Does Crave require franchisees to conduct an independent investigation into the financial and operational aspects of the franchised business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Franchisee has conducted an independent investigation of all aspects relating to the financial, |
|---|---|
| operational, | |
| and other aspects of the business of operating the Franchised Business. Franchisee further | |
| acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations | |
| of performance (financial or otherwise) for the Franchised Business provided for in this Agreement has | |
| been made to Franchisee by Franchisor and Franchisee hereby waives | |
| any claim against Franchisor for | |
| any business failure Franchisee may experience as a franchisee under this Agreement. |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must conduct an independent investigation of all aspects related to the financial and operational side of the business. This includes all other aspects of operating the franchised business.
Crave states that, except as set forth in the Franchise Disclosure Document, it has not made any representations of performance, financial or otherwise, to the franchisee. The franchisee also waives any claim against Crave for any business failure they may experience as a franchisee.
This acknowledgement highlights the importance of due diligence before investing in a Crave franchise. Prospective franchisees should take this requirement seriously and engage qualified professionals to review the opportunity. This could include accountants, business advisors, and legal counsel to fully understand the risks and potential rewards before signing the agreement.