Does the Crave franchisor's requirement of ADA certification from the franchisee imply ownership, control, leasing, or operation of the franchised business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
CRAVE Franchising, LLC ("Franchisor") and ("Franchisee") are parties , to for a the Franchise operation Agreement of dated a Crave restaurant at (the "Franchised Business"). In accordance with Article 2 of the Franchise Agreement, Franchisee certifies to Franchisor that, to the best of Franchisee's knowledge, the Franchised Business and its adjacent areas comply with all applicable federal, state and local accessibility laws, statutes, codes, rules, regulations and standards, including but not limited to the Americans with Disabilities Act. Franchisee acknowledges that it is an independent licensee and the requirement of this certification by Franchisee does not constitute ownership, control, leasing or operation of the Franchised Business. Franchisee acknowledges that Franchisee has relied on the information contained in this certification. Furthermore, Franchisee acknowledge its obligation under this Franchise Agreement directors, to and indemnify employees of and the in officers, connection with any and all claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by the indemnified party(ies) as a result of any matters associated with Franchisee's compliance with the Americans with Disabilities Act, as well as the costs, including attorneys' fees, related to the same. By: Name: Title: PRINCIPALS:
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisor requires franchisees to certify that their franchised business complies with the Americans with Disabilities Act (ADA). However, Crave explicitly states that this requirement does not imply ownership, control, leasing, or operation of the franchised business by the franchisor.
This certification is part of Attachment 7 to the Franchise Agreement, where the franchisee acknowledges their independent licensee status. This means that while Crave requires compliance with accessibility laws, the responsibility for ensuring and certifying this compliance rests solely with the franchisee.
Furthermore, the franchisee agrees to indemnify Crave against any claims, losses, costs, expenses, liabilities, compliance costs, and damages resulting from the franchisee's non-compliance with the ADA. This underscores that the franchisee bears the full responsibility and financial burden for ADA compliance, reinforcing the franchisor's position that the certification requirement does not equate to control or operation of the business.