What is the Crave franchisee's responsibility regarding pending or threatened actions, suits, proceedings, or investigations as of the date of execution of the Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- BY EXECUTING THE FRANCHISE AGREEMENT, FRANCHISEE AND ANY PRINCIPAL, INDIVIDUALLY AND ON BEHALF OF FRANCHISEE'S AND SUCH PRINCIPAL'S HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS, HEREBY FOREVER RELEASE AND DISCHARGE CRAVE FRANCHISING, LLC AND ANY OF ITS PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, AND SHAREHOLDERS FROM ANY AND ALL CLAIMS, DEMANDS AND JUDGMENTS RELATING TO OR ARISING UNDER THE STATEMENTS, CONDUCT, CLAIMS OR ANY OTHER AGREEMENT BETWEEN THE PARTIES EXECUTED PRIOR TO THE DATE OF THE FRANCHISE AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS, WHETHER PRESENTLY KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, ARISING UNDER THE FRANCHISE, SECURITIES, TAX OR ANTITRUST LAWS OF THE UNITED STATES OR OF ANY STATE OR TERRITORY THEREOF. THIS RELEASE IS SPECIFICALLY INAPPLICABLE TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, by executing the Franchise Agreement, the franchisee and their principals release and discharge Crave Franchising, LLC from any and all claims, demands, and judgments relating to agreements executed prior to the date of the Franchise Agreement. This includes claims, whether known or unknown, suspected or unsuspected, arising under franchise, securities, tax, or antitrust laws.
This release does not apply to any claims arising from representations made by Crave in its Franchise Disclosure Document received by the franchisee. This means that while franchisees waive rights to claims based on prior agreements, they retain the right to bring claims based on misrepresentations in the FDD itself.
In practical terms, a prospective Crave franchisee should carefully review all prior agreements and communications with Crave before signing the Franchise Agreement, as they will be giving up their right to sue based on those earlier interactions. However, the franchisee does not waive their rights regarding the FDD. It is important to consult with an attorney to fully understand the implications of this release.