What is the Crave franchisee's responsibility regarding locating and preparing suitable sites or municipalities within the Development Area?

According to Crave's 2025 Franchise Disclosure Document, franchisees entering into a Multi-Unit Development Agreement bear the sole responsibility for identifying and preparing suitable locations or municipalities within their designated Development Area. Crave does not guarantee the availability of appropriate sites or municipalities to meet the Minimum Performance Schedule outlined in the agreement. This means the franchisee is taking on the risk of ensuring there are viable locations to fulfill their development obligations. Crave retains the right to approve or disapprove sites or municipalities based on their criteria, adding another layer of due diligence required by the franchisee.

This aspect of the agreement places significant importance on the franchisee's market research and site selection capabilities. The Development Area's size can vary based on factors like market conditions, the franchisee's resources, and Crave's development plans. However, Crave's designation of a Development Area does not constitute a warranty that enough suitable locations exist for the franchisee to meet their development schedule. Therefore, franchisees must conduct thorough research to ensure the feasibility of meeting the Minimum Performance Schedule within the designated area.

Crave maintains control over site approval, meaning that even if a franchisee identifies a location, Crave can reject it if it does not meet their criteria. This underscores the importance of understanding Crave's site selection criteria and aligning the franchisee's search efforts accordingly. The franchisee carries the risk of investing time and resources into site identification and preparation, only to have Crave disapprove the location. This highlights the need for open communication and collaboration with Crave during the site selection process to minimize the risk of investing in unsuitable locations.

Overall, the terms of the Multi-Unit Development Agreement place the onus on the franchisee to proactively manage site selection and preparation within the Development Area. Franchisees should carefully consider their capabilities and resources for conducting market research, site selection, and preparation before entering into such an agreement with Crave. Understanding the risks and responsibilities associated with site selection is crucial for the success of a multi-unit Crave franchise.