Is Crave precluded from contesting the validity, enforceability, or application of laws or regulations related to the franchise agreement or its termination?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
The Acknowledgment Statement included in Exhibit I of the Franchise Disclosure Document does not apply to Maryland franchisees, and Maryland franchisees should not respond or sign the acknowledgments.
CRAVE FRANCHISING, LLC PRINCIPALS:
DISCLOSURE REQUIRED BY THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
(a) A prohibition on the right of a franchisee to join an association of franchises.
(b) A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel which deprives a franchisee of rights and protections provided in this act.
This shall not preclude a franchisee, after entering into a franchise agreement, from settling all claims.
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than thirty (30) days, to cure such failure.
- (d) A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee's inventory, supplies, equipment, fixtures and furnishings.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, several state-specific addenda address the enforceability and application of certain laws and regulations concerning the franchise agreement. In Maryland, the Franchise Agreement and Franchisee Acknowledgment Statement are amended to clarify that representations requiring franchisees to release, estop, or waive liability do not act as a release, estoppel, or waiver of any liability under the Maryland Franchise Registration and Disclosure Law. This suggests Crave cannot enforce waivers of liability related to Maryland franchise law.
In Virginia, if any provision of the Franchise Agreement involves undue influence by Crave to induce a franchisee to surrender any rights, that provision may not be enforceable under the Virginia Retail Franchising Act. Similarly, any grounds for default or termination stated in the franchise agreement that do not constitute "reasonable cause" as defined by Virginia law may also be unenforceable.
Michigan prohibits certain unfair provisions that are sometimes in franchise documents. These provisions, if present, are void and cannot be enforced against the franchisee. These include prohibitions on joining franchisee associations, requirements to assent to waivers depriving franchisees of rights, termination without good cause (including a reasonable opportunity to cure), and refusal to renew without fair compensation for the franchisee's assets. These stipulations indicate that Crave's ability to enforce certain terms is limited in Michigan to protect franchisee rights.