What is the Crave franchisee's responsibility regarding the selection of the site for the Crave Restaurant?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 the primary responsibility for site selection, including all associated costs and liabilities. The franchisee must locate, secure, and develop the restaurant site while adhering to Crave's specific site selection criteria. This involves finding a location that meets Crave's guidelines before entering into any lease or purchase agreement.
Specifically, the franchisee must submit a detailed site description to Crave for evaluation, demonstrating how the site aligns with Crave's criteria. Crave may conduct an on-site evaluation if deemed necessary. The franchisee has a limited timeframe of 90 days from signing the Franchise Agreement to submit all required site information. Crave then has 30 days to either approve or reject the proposed site. Failure to obtain specific approval from Crave results in the site being considered unapproved.
Crave provides written site selection guidelines to assist franchisees in this process. These guidelines cover various factors, including the location type (e.g., free-standing building, shopping center), parking availability, visibility, signage, co-tenants, nearby businesses, accessibility, premises condition, proximity to competitors, utility availability, and local demographics such as population and median income. Crave uses these factors to assess the suitability of the proposed site. The franchisee must also obtain Crave's approval for any contract of sale or lease before signing it and provide a copy of the fully signed lease to Crave. Crave may also require a Collateral Assignment of Lease.
If a franchisee fails to secure a suitable site within 90 days of signing the Franchise Agreement, Crave may offer an extension or terminate the agreement. This highlights the importance of proactive site selection and adherence to Crave's guidelines to avoid potential termination of the franchise agreement. The franchisee must also ensure that the restaurant construction aligns with Crave's approved plans and may be required to use Crave's designated contractor for the build-out.