If Crave provides administrative services for financing, does the franchisee waive all claims against Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
granted by the Franchise Agreement.
Initial
- Franchisee is aware of the fact that other present or future franchisees of Franchisor may operate under different forms of agreement(s), and consequently that Franchisor's obligations and rights with respect to its various franchisees may differ materially in certain circumstances.
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- It is recognized by the parties that Franchisor is also (or may become) a manufacturer or distributor of certain products or services under the Marks licensed herein; and it is understood that Franchisor does not warrant that such products or services will not be sold within Franchisee's Territory by others who may have purchased such products or services from Franchisor.
Initial
- BY EXECUTING THE FRANCHISE AGREEMENT, FRANCHISEE AND ANY PRINCIPAL, INDIVIDUALLY AND ON BEHALF OF FRANCHISEE'S AND SUCH PRINCIPAL'S HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS, HEREBY FOREVER RELEASE AND DISCHARGE CRAVE FRANCHISING, LLC AND ANY OF ITS PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, AND SHAREHOLDERS FROM ANY AND ALL CLAIMS, DEMANDS AND JUDGMENTS RELATING TO OR ARISING UNDER THE STATEMENTS, CONDUCT, CLAIMS OR ANY OTHER AGREEMENT BETWEEN THE PARTIES EXECUTED PRIOR TO THE DATE OF THE FRANCHISE AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS, WHETHER PRESENTLY KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, ARISING UNDER THE FRANCHISE, SECURITIES, TAX OR ANTITRUST LAWS OF THE UNITED STATES OR OF ANY STATE OR TERRITORY THEREOF. THIS RELEASE IS SPECIFICALLY INAPPLICABLE TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE.
Initial ACKNOWLEDGED: PRINCIPALS: Name: Date:
State Effective Dates
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee's waiver of claims against Crave is complex and depends on the timing, nature, and jurisdiction of the claim.
The Franchise Agreement includes a general release where the franchisee releases Crave from claims and demands related to agreements executed prior to the date of the Franchise Agreement. This release specifically excludes claims arising from representations made by Crave in its Franchise Disclosure Document. This means that a franchisee does not waive claims based on misrepresentations in the FDD itself.
Furthermore, any statement or acknowledgment signed by a franchisee cannot waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Crave. This provision supersedes any other conflicting term in the franchise documents. For franchisees in Maryland, the FDD includes an addendum stating that any release, estoppel, or waiver of liability does not apply to liability incurred under the Maryland Franchise Registration and Disclosure Law. Therefore, the franchisee does not waive all claims against Crave if Crave provides administrative services for financing.