Regarding financial performance, what representations, if any, does Crave make to franchisees outside of those contained in the Franchise Disclosure Document?
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, Item 23 includes a Franchisee Acknowledgment Statement which states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Crave or its representatives. This acknowledgment is not applicable to Maryland franchisees.
This means that while Crave requires franchisees to acknowledge certain aspects of the franchise relationship, these acknowledgments do not supersede franchise laws or protect Crave from liability for fraudulent statements. Franchisees retain their rights to pursue claims under applicable state franchise laws, including claims of fraud based on statements made by Crave.
Prospective franchisees should pay close attention to any representations made by Crave during the franchise sales process and ensure that these representations are consistent with the information provided in the Franchise Disclosure Document. If there are discrepancies, franchisees should seek clarification and legal advice before signing the Franchise Agreement. This is especially important in states with franchise laws that provide additional protections to franchisees.