What happens if a Crave franchisee fails to maintain the standards, specifications, or procedures prescribed in writing by Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
going, you understand and agree that we have the right, in our sole discretion, to grant to certain Crave businesses variances from our standard menu to accommodate regional or local tastes or ingredients, and that nothing in this Agreement requires us to grant to you a similar variance.
- 7.5.3 To maintain in sufficient supply and to use and sell at all times only such food and beverage items, ingredients, other products, materials, merchandise, supplies and paper goods that conform to our standards and specifications; to prepare all menu items in accordance with our recipes and procedures for preparation contained in the Manual or other written directives, including, but not limited to, the prescribed measurements of ingredients; and to refrain from deviating from our standards and specifications by the use or offer of non-conforming items or differing amounts of any items, without our prior written consent.
- 7.5.4 To permit us or our agents, during normal business hours, to remove a reasonable number of samples of food or non-food items from your inventory or from the Franchised Business, without payment therefor, in amounts reasonably necessary for testing by us or an independent laboratory to determine whether such samples meet our then-current standards and specifications. In addition to any other remedies we may have under this Agreement, we may require you to bear the cost of such testing if the supplier of the item has not previously been approved by us or if the sample fails to conform with our reasonable specifications.
- 7.5.5 To purchase or lease and install, at your expense, all fixtures, furnishings, equipment (including point-of-sale and computer hardware and software systems), décor items, signs, delivery vehicles, and related items as we may reasonably direct from time to time in the Manual or otherwise in writing; and to refrain from installing or permitting to be installed on or about the Franchised
Business premises, without our prior written consent, any fixtures, furnishings, equipment, delivery vehicles, décor items, signs, games, vending machines or other items not previously approved as meeting our standards and specifications.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must adhere to the brand's standards and specifications. Crave requires franchisees to maintain sufficient supplies of food, beverages, ingredients, and other products that meet their standards. These items must be sold at all times. Franchisees must prepare all menu items according to Crave's recipes and procedures, including using the prescribed measurements of ingredients. Franchisees cannot deviate from these standards by using non-conforming items or differing amounts of any items without prior written consent from Crave.
Crave or its agents can remove samples of food or non-food items from the franchisee's inventory for testing to ensure they meet Crave's standards. If the supplier of the item has not been previously approved by Crave, or if the sample fails to conform to Crave's specifications, the franchisee may be required to bear the cost of such testing. Franchisees must also install and maintain equipment and telecommunications lines according to Crave's specifications, allowing Crave to access and retrieve information from the point-of-sale system. Failure to maintain this equipment and communication methods in operation and accessible to Crave is considered a material default under the Franchise Agreement.
In practical terms, this means a Crave franchisee must be vigilant about maintaining quality control and adhering to Crave's operational guidelines. The franchisee must ensure all products and ingredients meet Crave's standards, prepare menu items according to specified recipes, and maintain the required equipment and communication systems. Failure to comply with these requirements can lead to additional costs for testing and may constitute a material default of the Franchise Agreement. This highlights the importance of carefully following Crave's standards and specifications to avoid potential penalties and maintain a successful franchise operation.