What is the Crave franchisee's responsibility regarding the construction of the Crave Restaurant at the approved site?
Crave Franchise · 2025 FDDAnswer 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. Our criteria for approving municipalities include: the number and size of shopping centers, malls, business parks or business districts, parks and open public spaces; availability of parking or standing on main roads; other food truck businesses in the immediate area; and population base and median income of the population. We will use these and other factors in determining the suitability of your proposed municipality for a Crave Food Truck.
If you are not able to locate a suitable municipality in which to operate your Food Truck 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.
Opening: We estimate that the time from the signing of the Franchise Agreement to the opening of the Restaurant will be approximately four to eight months. Your total timeframe may be shorter or longer depending on the time necessary to obtain an approved site, to obtain financing, to obtain the permits and licenses for the construction and operation of the Restaurant, to complete construction or remodeling as it may be affected by weather conditions, shortages, delivery schedules and other similar factors, to complete the interior and exterior of the Restaurant, including decorating, purchasing and installing fixtures, equipment and signs, and to complete preparation for operating the Restaurant, including purchasing inventory and supplies.
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 bears significant responsibility for the construction of their restaurant at the approved site. Specifically, the franchisee is responsible for all costs, liabilities, and expenses associated with developing the site and constructing and equipping the restaurant. This includes locating and obtaining a suitable site that meets Crave's site selection criteria, which cover aspects like location type (free-standing, shopping center), parking availability, visibility, signage, co-tenants, accessibility, condition of the premises, proximity to competitors, utilities, and local demographics. The franchisee must submit site information to Crave for approval within 90 days of signing the Franchise Agreement. Crave then has 30 days to approve or decline the site.
Crave provides sample plans and/or specifications for the restaurant's construction, but the franchisee must arrange for construction plans that incorporate Crave's requirements and are tailored to the approved site's size and shape. Crave retains the right to designate or approve the architect/designer and requires the franchisee to use their designated contractor for the build-out. The franchisee cannot begin construction until Crave approves the construction plans, and any changes to the plans also require Crave's approval. Crave has the right to inspect the restaurant during construction.
The FDD states that the time between signing the Franchise Agreement and opening the restaurant is estimated to be four to eight months. However, the actual timeframe can vary based on factors such as obtaining site approval, securing financing, acquiring necessary permits and licenses, construction or remodeling timelines (affected by weather, shortages, etc.), completing interior and exterior work, and preparing for operations. The franchisee must open the restaurant within 12 months of signing the Franchise Agreement, or Crave has the right to terminate the agreement or extend the opening period. The franchisee cannot open for business without Crave's approval.
While Crave provides assistance with site selection guidelines, standard specifications, and plan reviews, the franchisee is ultimately responsible for managing and funding the entire construction process. This arrangement is fairly typical in the franchise industry, where franchisees usually handle local construction and development while adhering to the franchisor's brand standards and operational requirements. Prospective franchisees should carefully consider these responsibilities and associated costs when evaluating a Crave franchise.