Is Crave obligated to form an advisory council?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our discretion, form an advisory council to work with us to improve the System, the products offered by Crave businesses, advertising conducted by the Brand Development Fund, and any other matters that we deem appropriate. If an advisory council is formed, it will act solely in an advisory capacity, and will not have decision making authority. We will have the right to form, change, merge or dissolve any advisory council. We may develop by-laws for the governance of any advisory council.
If formed, an advisory council will be comprised of our representatives and franchisee representatives. Franchisee representatives may be selected by us or by a vote of other franchisees in the System. If you participate on an advisory council, you will pay any expenses you incur related to your participation, such as travel and living expenses to attend council meetings.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave is not required to form an advisory council. The FDD states that Crave may, at its discretion, form an advisory council. This council would work with Crave to improve the System, the products offered, advertising, and other matters deemed appropriate by Crave. The advisory council, if formed, will only act in an advisory capacity and will not have any decision-making authority. Crave retains the right to form, change, merge, or dissolve any advisory council and may develop by-laws for its governance.
If an advisory council is established, it will consist of representatives from Crave and franchisee representatives. Franchisee representatives may be selected by Crave or through a vote by other franchisees within the System. Franchisees who participate on the advisory council are responsible for covering their own expenses, such as travel and accommodation costs, to attend council meetings.
This discretionary approach to forming an advisory council is relatively common in franchising. It allows Crave to maintain control over key decisions while potentially benefiting from franchisee input. However, franchisees should be aware that Crave is not obligated to act on the council's advice, and participation may involve personal expenses without guaranteed influence.