factual

Does Crave require franchisees to consent to conduct business electronically?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

you shall: (a) comply with the requirements of applicable law; (b) immediately give us written notice of said conflict; and (c) promptly and fully cooperate with us and our counsel as we may request to assist us in our determination regarding the most effective way, if any, to meet our standards and policies pertaining to Privacy within the bounds of applicable law.

21.4 Telecommunications

You shall comply with our requirements (as set forth in the Manual or otherwise in writing) with respect to establishing and maintaining telecommunications connections between your Computer System and our Intranet (as defined below), if any, and/or such other computer systems as we may reasonably require.

21.5 Intranet

We may establish a website providing private and secure communications between us, you, franchisees, licensees and other persons and entities as determined by us, in our sole discretion (an "Intranet"). You shall comply with our requirements (as set forth in the Manual or otherwise in writing) with respect to connecting to the Intranet and utilizing the Intranet in connection with the operation of the Franchised Business. The Intranet may include, without limitation, the Manual, training other assistance materials, and management reporting solutions (both upstream and downstream, as we may direct). You shall purchase and maintain such computer software and hardware as may be required to connect to and utilize the Intranet.

21.6 On-line Use of Proprietary Marks

You shall not use the Proprietary Marks, or any abbreviation or other name associated with us and/or the System as part of any email address, domain name, and/or other identification of you in any electronic medium. You agree not to transmit or cause any other party to transmit advertisements or solicitations by email or other electronic media without our prior written consent as to your plan for transmitting such advertisements.

21.7 No Outsourcing Without Prior Written Consent

You shall not hire third party or outside vendors to perform any services or obligations in connection with the Computer System, Required Software, or any other of your obligations without our

prior written approval therefor, unless we have designated an approved supplier to provide such services. Our consideration of any proposed outsourcing vendor(s) may be conditioned upon, among other things, such third party or outside vendor's entry into a confidentiality agreement with us and you in a form that is reasonably provided by us.

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

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, franchisees are expected to engage in electronic business practices as part of their franchise agreement. The document states that Crave may establish an intranet for communication and the sharing of materials. Franchisees must comply with Crave's requirements for connecting to and using this intranet, including purchasing necessary computer software and hardware.

Crave franchisees are also required to maintain high-speed internet access or other electronic communication methods as specified by Crave. Failure to maintain these electronic communication methods in operational condition is considered a material default of the franchise agreement. This implies that franchisees must consent to and actively participate in conducting business electronically to remain in compliance with the franchise agreement.

Furthermore, Crave retains control over the brand's online presence. While franchisees may be allowed a "click through" subpage on Crave's website, they must provide updated content as specified by Crave. Franchisees are restricted from creating their own websites or using the Proprietary Marks in any electronic medium without prior written consent. This level of control underscores the importance of electronic engagement within the Crave franchise system, solidifying the need for franchisees to consent to conduct business electronically under the franchisor's guidance and regulations.

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.