Does Crave have an obligation to approve sites or municipalities that do not meet its criteria, even if it prevents the franchisee from meeting the Minimum Performance Schedule?

According to Crave's 2025 Franchise Disclosure Document, Crave franchisees entering into a Multi-Unit Development Agreement are responsible for securing suitable locations or municipalities to meet the Minimum Performance Schedule. Crave bears no obligation to approve sites or municipalities that do not meet its criteria, even if this prevents the franchisee from meeting the Minimum Performance Schedule. This means that the success of meeting the development schedule rests solely on the franchisee's ability to find and secure appropriate locations that align with Crave's standards.

This aspect of the agreement places significant risk on the franchisee. The designation of a Development Area by Crave does not guarantee the availability of suitable sites or municipalities. Franchisees should conduct thorough market research and due diligence to ensure that the Development Area offers enough viable locations to meet the Minimum Performance Schedule outlined in their agreement. Failure to meet the schedule can result in a loss of territorial exclusivity or termination of the Multi-Unit Development Agreement.

Prospective franchisees should carefully consider the implications of this provision and assess their ability to identify and secure suitable locations that meet Crave's criteria within the designated timeframe. It is crucial to understand the specific criteria Crave uses for site or municipality approval and to evaluate the potential challenges in meeting those requirements within the Development Area. Franchisees should also negotiate clear terms and conditions regarding site approval and potential recourse if suitable locations cannot be found despite diligent efforts.