factual

What pricing information is a Crave franchisee obligated to provide to the franchisor?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

The following sentence is inserted at the end of Section 4.2.2: "You shall provide separate Royalty Reports and any other reports, including electronic reporting, required under this Agreement for the Food Truck."

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, franchisees operating a Crave food truck must provide specific pricing information to the franchisor. Specifically, the franchisee is obligated to submit separate Royalty Reports and any other reports, including electronic reporting, as required under the Franchise Agreement for the food truck. This ensures that Crave can accurately calculate and collect the royalty fees associated with the food truck's gross sales.

This requirement is in addition to any other reporting obligations outlined in the standard Franchise Agreement for the traditional Crave restaurant. By mandating separate reports for the food truck, Crave aims to maintain clear financial oversight and accountability for this specific business segment. This allows Crave to track the performance of its food truck operations independently from its brick-and-mortar restaurants.

For a prospective Crave franchisee, this means being prepared to implement and maintain a separate reporting system for a food truck, if applicable. This may involve additional administrative tasks and potentially the use of specific software or tools to generate the required reports. Franchisees should clarify with Crave the exact format and frequency of these reports to ensure compliance with the Franchise Agreement.

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.