Does Crave provide any warranties or guarantees that franchisees can rely on?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3 You understand and agree that nothing in this Agreement authorizes you to make any contract, agreement, warranty or representation on our behalf, or to incur any debt or other obligation in our name, and that we assume no liability for, nor shall be deemed liable by reason of, any act or omission of yours or any claim or judgment arising therefrom. You shall indemnify and hold us and our officers, directors, and employees harmless against any and all such claims arising directly or indirectly from, as a result of, or in connection with your activities hereunder, as well as the cost, including reasonable attorneys' fees, of defending against them, except that the foregoing shall not apply to infringement actions regarding the Marks which are caused solely by our actions or actions caused by the negligent acts of us or our agents.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are not authorized to make any warranties on behalf of Crave. Specifically, the franchise agreement states that the franchisee cannot make any agreement, warranty, or representation on Crave's behalf, nor can they incur any debt or obligation in Crave's name.
Crave assumes no liability for any act or omission by the franchisee or any claim or judgment arising from their actions. The franchisee is obligated to indemnify Crave and its officers, directors, and employees against any claims arising from the franchisee's activities. This indemnification includes covering the costs of defending against such claims, including reasonable attorney's fees.
This arrangement is typical in franchising, where franchisees are independent business owners. Franchisees are responsible for their own actions and cannot bind the franchisor to any obligations unless specifically authorized. The only exception to the indemnification requirement involves infringement actions regarding the trademarks that are caused solely by Crave's actions or the negligent acts of Crave or its agents.
Prospective franchisees should be aware that they are operating as independent licensees and must conduct themselves accordingly. They should ensure they understand the scope of their authority and the limitations on their ability to make representations or warranties on behalf of the Crave brand.