Does Crave require franchisees to indemnify them for violations of industry standards?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
CRAVE Franchising, LLC ("Franchisor") and ("Franchisee") are parties , to for a the Franchise operation Agreement of dated a Crave restaurant at (the "Franchised Business"). In accordance with Article 2 of the Franchise Agreement, Franchisee certifies to Franchisor that, to the best of Franchisee's knowledge, the Franchised Business and its adjacent areas comply with all applicable federal, state and local accessibility laws, statutes, codes, rules, regulations and standards, including but not limited to the Americans with Disabilities Act. Franchisee acknowledges that it is an independent licensee and the requirement of this certification by Franchisee does not constitute ownership, control, leasing or operation of the Franchised Business. Franchisee acknowledges that Franchisee has relied on the information contained in this certification. Furthermore, Franchisee acknowledge its obligation under this Franchise Agreement directors, to and indemnify employees of and the in officers, connection with any and all claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by the indemnified party(ies) as a result of any matters associated with Franchisee's compliance with the Americans with Disabilities Act, as well as the costs, including attorneys' fees, related to the same. By: Name: Title: PRINCIPALS:
ATTACHMENT 8 TO THE FRANCHISE AGREEMENT
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must indemnify Crave for claims, losses, costs, and expenses related to the franchisee's compliance with the Americans with Disabilities Act (ADA). This requirement is part of Attachment 7 to the Franchise Agreement, which includes an ADA certification.
This means that if a franchisee's Crave restaurant location does not comply with ADA standards, and Crave incurs costs or liabilities as a result, the franchisee is responsible for covering those expenses. The franchisee's indemnification extends to all claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by Crave, including attorney's fees.
This type of indemnification clause is relatively common in franchise agreements, as it protects the franchisor from liabilities arising from the franchisee's operations. However, franchisees should carefully review the scope of the indemnification to understand their potential financial exposure. In this case, the indemnification is specifically tied to ADA compliance, so franchisees should ensure their locations meet all applicable accessibility standards.