What happens if a Crave franchisee fails a quality assurance audit or inspection and does not cure the deficiencies within the specified timeframe?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (u) If you fail a quality assurance audit or inspection and do not cure any deficiencies detected during such audit or inspection within fifteen (15) days;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee fails a quality assurance audit or inspection, they have a 15-day period to correct any identified deficiencies. Failure to cure these deficiencies within this 15-day timeframe constitutes a breach of the franchise agreement.
This failure to comply with the cure period can lead to significant consequences, as it provides Crave with grounds to terminate the franchise agreement. Termination means the franchisee could lose their right to operate under the Crave brand, potentially losing the investment made in establishing the franchise.
Quality assurance audits and inspections are standard practice in franchising to ensure brand consistency and maintain quality standards across all locations. Franchisees should take these audits seriously and promptly address any issues to avoid jeopardizing their franchise agreement with Crave.