factual

Is Crave obligated to approve any particular supplier through its supplier approval procedure?

Crave Franchise · 2025 FDD

Answer 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, Crave is not obligated to approve any particular supplier through its supplier approval procedure. While franchisees can request approval for new products or suppliers, Crave retains the discretion to deny approval if it's not in the best interest of the Crave system.

To request approval, a franchisee must submit a written request and pay an evaluation fee, covering Crave's testing and inspection costs. Crave can inspect the supplier's facilities and test product samples. Crave will notify the franchisee in writing within 30 days whether the product or supplier is approved or disapproved.

Crave does not have to share its approval criteria with franchisees or suppliers. Crave can also revoke prior approval of any product or supplier, requiring the franchisee to cease using that product or supplier upon written notice. This allows Crave to maintain quality control and uniformity within the franchise system, but it also means franchisees have limited flexibility in sourcing products and services.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.