factual

What is the Crave franchisee's responsibility for constructing and equipping the Crave Restaurant at the approved site?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

other Franchised Business personnel. (Franchise Agreement, Section 6.5.)

Site Selection: You must assume all costs, liabilities, expenses, and responsibility for locating, obtaining, and developing a site for the Restaurant and for constructing and equipping the Restaurant at the approved site. You will select the site for the Restaurant subject to our approval and using our site selection criteria. Before you lease or purchase the site for the Restaurant, you must locate a site that satisfies our site selection guidelines. If we deem it necessary, we will conduct one on-site evaluation, but before we conduct the evaluation you must submit to us in the form we specify a description of the site, including evidence that the site satisfies our site selection guidelines, together with other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site. We have the right to approve deviations from our site selection standards based on the individual factors and components of a particular site.

You must have located and submitted to us, for our review, all information we require regarding the site you propose for your Restaurant no later than 90 days after you have signed the Franchise Agreement. We will have 30 days after we receive all the required information and materials from you to approve or decline the proposed site as the location for your Crave Restaurant. If we do not provide our specific approval of a proposed site, the site is deemed not approved.

We will provide you with our current written site selection guidelines and any other site selection counseling and assistance we think is advisable. Our criteria for site selection include: location of the site and its setting (free-standing building, shopping center, shopping mall, downtown location, etc.); availability of parking; visibility from main roads; availability, size and placement of signage; co-tenants in the shopping center or immediate area; other businesses in the immediate area; accessibility to the site; condition of the premises and how much build-out or construction it will need; proximity to competitive businesses; availability of utilities; and base population and median income in the immediate area. We will use these and other factors in determining the suitability of your proposed site for a Crave Restaurant.

You must obtain our approval of the site for the Restaurant before you acquire it, and you must also obtain our approval of any contract of sale or lease for the Restaurant before you sign the contract or lease. You must provide us with a copy of the fully signed lease for the Restaurant premises. We may require you and your landlord to sign a Collateral Assignment of Lease which permits us to assume your lease in certain circumstances, including the termination or expiration of your Franchise Agreement (Attachment 2 to the Franchise Agreement).

If you are not able to locate a suitable site for your Restaurant within 90 days after you sign the Franchise Agreement, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement.

You must obtain our approval of the municipality in which your Food Truck will operate before you may begin operations. You must submit to us, for our review, all the information we require regarding the municipality you propose for your Food Truck no later than 90 days after you have signed the Franchise Agreement. We will have 30 days after we receive all required information and materials from you to

approve or decline the proposed municipality for the operation of your Food Truck. If we do not provide our specific approval of a proposed municipality, then it is deemed not approved.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs associated with developing the restaurant at the approved site. This includes the costs, liabilities, and expenses for locating, obtaining, and developing the site, as well as constructing and equipping the restaurant. The franchisee must select a site that meets Crave's site selection criteria, subject to Crave's approval.

Crave will provide the franchisee with written site selection guidelines and may offer additional counseling. The site selection criteria include factors such as location, parking availability, visibility, signage, co-tenants, nearby businesses, accessibility, condition of the premises, proximity to competitors, availability of utilities, population base, and median income. The franchisee must submit all required information about the proposed site to Crave for review within 90 days of signing the Franchise Agreement. Crave then has 30 days to approve or decline the site.

The franchisee must construct the restaurant according to Crave's approved plans, which include sample plans and specifications. Crave has the right to designate or approve the architect/designer and requires the franchisee to use their designated contractor for the build-out. The franchisee is responsible for creating construction plans that incorporate Crave's requirements, and these plans must be approved by Crave before construction begins. Crave has the right to inspect the restaurant during construction but does not assess compliance with laws, regulations, or building codes. The franchisee cannot open the restaurant without Crave's approval.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.