What information can Crave request from a Crave franchisee to determine whether to exercise its option to purchase the business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.6 For each subsequent Franchise Agreement, you shall (i) request Franchisor's then-current Franchise Disclosure Document, (ii) submit to Franchisor all information and other documents requested by Franchisor prior to and as a basis for the issuance of Franchise Agreements in the System, (iii) submit to Franchisor all financial statements reasonably requested by Franchisor, and (iv) satisfy Franchisor's thencurrent financial criteria.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, when a franchisee exercises a development right for a subsequent franchise agreement, Crave can request specific information. Prior to issuing the Franchise Agreement, Crave may request all information and other documents that it typically requires as a basis for issuing franchise agreements within its system. Crave can also request all financial statements it reasonably deems necessary and the franchisee must satisfy Crave's current financial criteria at that time.
This means that if a franchisee wants to open additional Crave locations beyond their initial agreement, they will need to provide updated financial information and meet Crave's then-current standards. This allows Crave to assess the franchisee's financial health and ability to successfully operate additional locations.
For a prospective franchisee, this highlights the importance of maintaining strong financial performance and keeping accurate records. It also means understanding that the criteria for opening additional locations may change over time, and what was sufficient initially may not be enough for future expansion.