Can the Crave franchisor act as the franchisee's attorney-in-fact?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee acknowledges that it has had ample opportunity to consult with its own attorneys, accountants and other advisors and that the attorneys for Franchisor have not advised or represented Franchisee with respect to the Franchise Agreement or the relationship thereby created.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document excerpts, it is not explicitly stated whether the franchisor can act as the franchisee's attorney-in-fact. However, the document does include an acknowledgment from the franchisee that they have had ample opportunity to consult with their own attorneys, accountants, and other advisors, and that the attorneys for Crave have not advised or represented the franchisee with respect to the Franchise Agreement or the relationship thereby created. This suggests that Crave encourages franchisees to seek independent legal counsel.
The FDD also includes addenda for several states, addressing specific state laws regarding franchising. For example, the Virginia Retail Franchising Act states that it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any right given to him under the franchise. Similarly, the Indiana addendum states that a franchisee may not agree to waive any claims or rights. These provisions aim to protect franchisees from potentially overbearing actions by the franchisor.
Given the absence of a direct statement about the franchisor acting as the franchisee's attorney-in-fact, and considering the emphasis on independent legal counsel and franchisee protection in the FDD, it is unlikely that Crave would typically act in this capacity. Prospective franchisees should clarify this point directly with Crave during their due diligence process to fully understand the franchisor's role and the franchisee's rights and responsibilities.