factual

What happens if Crave Cooperative members are unable to resolve an issue affecting the Cooperative's establishment or functioning within 45 days?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 8.4.8 if an impasse occurs because of a Cooperative members' inability or failure, within forty-five (45) days, to resolve any issue affecting the Cooperative's establishment or effective functioning, upon request of any Cooperative member, that issue must be submitted to us for consideration, and our resolution of such issue is final and binding on all Cooperative members.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, if members of a Crave Cooperative are unable to resolve an issue affecting the Cooperative's establishment or effective functioning within 45 days, any Cooperative member can request that the issue be submitted to Crave for consideration. Crave's resolution of the issue is then considered final and binding on all Cooperative members.

This means that while Crave franchisees have the ability to form and participate in marketing cooperatives, Crave retains ultimate control over the cooperative's activities. If the members cannot agree on a resolution, Crave has the final say. This could be beneficial in preventing deadlocks or ensuring compliance with brand standards, but it also means that franchisees may not always get their way in cooperative decisions.

For a prospective Crave franchisee, this highlights the importance of understanding Crave's vision for marketing and advertising, as well as the potential for disagreements within the Cooperative. Franchisees should be prepared to potentially cede control to Crave in the event of an impasse. It would be wise to discuss with existing franchisees their experiences with the Cooperative and how such issues have been handled in the past.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.