What should a prospective Crave franchisee do if the FDD contains a false or misleading statement?

According to the 2025 Crave Franchise Disclosure Document, prospective franchisees have certain protections under state franchise laws. Specifically, the Franchisee Acknowledgment Statement includes a provision that protects franchisees from waiving claims under applicable state franchise law, including claims related to fraud in the inducement. This means that if a franchisee believes they were misled by statements made by Crave or its representatives, they retain the right to pursue legal claims.

This protection also extends to disclaiming reliance on statements made by Crave, franchise sellers, or anyone acting on Crave's behalf. The FDD explicitly states that no statement, questionnaire, or acknowledgment signed by the franchisee can disclaim reliance on statements made by the franchisor or its representatives. This ensures that franchisees are not prevented from claiming they relied on false or misleading information when deciding to invest in a Crave franchise.

It's important to note that this provision supersedes any other conflicting terms in any document executed in connection with the franchise agreement. This reinforces the franchisee's rights and prevents Crave from circumventing these protections through other clauses or agreements. However, this specific protection does not apply to Maryland franchisees, as stated in the FDD. Therefore, prospective franchisees should carefully review the FDD and any related documents, and consult with an attorney to understand their rights and obligations under applicable state laws.