If a Crave franchisee requests approval for a new supplier, is the franchisee required to reimburse Crave for testing and inspection costs?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to purchase, lease or use any products that we have not previously approved, or purchase or lease from a supplier we have not previously approved, you must submit a written request for approval or you must request the supplier to do so. You must pay our then-current evaluation fee for each product or supplier you request to have approved, and you must reimburse our reasonable costs related to our testing and inspection. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered, either to us or to an independent laboratory, for testing. We have the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet any of our then-current standards. Our supplier approval procedure does not obligate us to approve any particular supplier. We will notify you in writing within 30 days after you have requested our approval whether the proposed product or supplier is, in fact, approved or disapproved. We are not required to make available to you or to any supplier our criteria for product or supplier approval. We are not obligated to approve any specific product or supplier if we believe that approval of that product or supplier is not in the best interests of the System. We may revoke our prior approval of any product or supplier at any time, and after your receipt of written notice from us regarding our revocation you must stop using that product or stop purchasing from that supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase or lease products from a supplier not previously approved by Crave, they must submit a written request for approval. This request can be made either by the franchisee or by the supplier themselves. The franchisee is responsible for paying Crave's current evaluation fee for each product or supplier they want approved.
In addition to the evaluation fee, the franchisee must also reimburse Crave for reasonable costs associated with testing and inspection of the new product or supplier. Crave has the right to inspect the supplier's facilities and request samples for testing, either internally or through an independent laboratory. Crave will notify the franchisee in writing within 30 days of the request whether the product or supplier is approved or disapproved.
Crave's supplier approval procedure does not guarantee approval of any particular supplier. Crave does not disclose its specific criteria for product or supplier approval and is not obligated to approve a supplier if it believes doing so is not in the best interest of the Crave system. Crave also retains the right to re-inspect approved suppliers and revoke approval if they no longer meet Crave's standards. If approval is revoked, the franchisee must immediately cease using the product or purchasing from that supplier.