Has the Crave franchisor made any representations of performance (financial or otherwise) to the franchisee, other than what is in the Disclosure Document?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Franchisee has conducted an independent investigation of all aspects relating to the financial, |
|---|---|
| operational, | |
| and other aspects of the business of operating the Franchised Business. Franchisee further | |
| acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations | |
| of performance (financial or otherwise) for the Franchised Business provided for in this Agreement has | |
| been made to Franchisee by Franchisor and Franchisee hereby waives | |
| any claim against Franchisor for | |
| any business failure Franchisee may experience as a franchisee under this Agreement. |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee acknowledges that they have conducted an independent investigation into the financial, operational, and other aspects of operating the franchised business. Crave states that, except as set forth in the Franchise Disclosure Document, no representations of performance (financial or otherwise) for the franchised business have been made to the franchisee by Crave. The franchisee waives any claim against Crave for any business failure they may experience as a franchisee under the Franchise Agreement.
This means that prospective Crave franchisees should not rely on any verbal or written promises of financial performance that are not explicitly stated in the FDD. It is standard practice in franchising to disclaim any representations outside of the FDD to avoid potential legal issues related to unsubstantiated claims.
Therefore, it is crucial for potential Crave franchisees to conduct their own due diligence, including market research, financial analysis, and consultation with business advisors, to assess the potential profitability and risks associated with the franchise opportunity. Relying solely on information outside the FDD is risky, as the franchisee bears the responsibility for the success or failure of their business.