What is the nature of the relationship between Crave and its franchisees, as defined in Article 16?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that Franchisee alone exercises day-to-day control over all operations, activities, and elements of the Franchised Business, and that under no circumstance shall Franchisor do so or be deemed to do so. Franchisee further acknowledges and agrees, and will never claim otherwise, that the various restrictions, prohibitions, specifications, and procedures of the System which Franchisee is required to comply with under this Agreement, whether set forth in the Manual or otherwise, do not directly or indirectly constitute, suggest, infer or imply that Franchisor controls any aspect or element of the day-to-day operations of the Franchised Business, which Franchisee alone controls, but only constitute standards to which Franchisee must adhere when exercising control of the day-to-day operations of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Article 16 clarifies the relationship between Crave and its franchisees, emphasizing that franchisees are independent operators. Specifically, Section 16.1 states that the franchisee has complete control over the day-to-day operations of the franchised business. Crave's standards and procedures do not imply that Crave controls the daily operations; rather, they are standards that the franchisee must follow.
This delineation is further reinforced by Attachment 7 to the Franchise Agreement, which includes an Americans with Disabilities Act Certification. This certification requires the franchisee to certify compliance with accessibility laws, acknowledging their status as an independent licensee. The certification requirement does not imply that Crave owns, controls, leases, or operates the franchised business.
These provisions are typical in franchising, where franchisees maintain operational independence while adhering to the franchisor's system standards. This arrangement allows Crave to maintain brand consistency while empowering franchisees to manage their businesses. Prospective franchisees should understand that while they benefit from the Crave brand and system, they are responsible for the daily management and compliance of their specific location.