Can Crave require inspection of a potential supplier's facilities before approval?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to purchase, lease or use any products that we have not previously approved, or purchase or lease from a supplier we have not previously approved, you must submit a written request for approval or you must request the supplier to do so. You must pay our then-current evaluation fee for each product or supplier you request to have approved, and you must reimburse our reasonable costs related to our testing and inspection. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered, either to us or to an independent laboratory, for testing. We have the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet any of our then-current standards. Our supplier approval procedure does not obligate us to approve any particular supplier. We will notify you in writing within 30 days after you have requested our approval whether the proposed product or supplier is, in fact, approved or disapproved. We are not required to make available to you or to any supplier our criteria for product or supplier approval. We are not obligated to approve any specific product or supplier if we believe that approval of that product or supplier is not in the best interests of the System. We may revoke our prior approval of any product or supplier at any time, and after your receipt of written notice from us regarding our revocation you must stop using that product or stop purchasing from that supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to inspect a potential supplier's facilities. If a franchisee wishes to purchase or lease products from a supplier not already approved by Crave, they must submit a written request for approval. This process also applies if the supplier themselves requests approval.
As part of the approval process, Crave can require its representatives to inspect the supplier's facilities. Additionally, Crave can request samples from the supplier for testing, either by Crave itself or by an independent laboratory. The franchisee is responsible for reimbursing Crave's reasonable costs related to testing and inspection. Crave also retains the right to re-inspect the facilities and products of any approved supplier and can revoke approval if the supplier fails to meet Crave's standards.
Crave will notify the franchisee in writing within 30 days of the approval request whether the proposed product or supplier is approved or disapproved. However, Crave is not obligated to disclose its criteria for product or supplier approval to either the franchisee or the supplier. Crave also reserves the right to deny approval if it believes that approving a particular product or supplier is not in the best interests of the Crave system. This allows Crave to maintain quality control and uniformity across all franchise locations.
This requirement ensures that Crave maintains control over the quality and standards of products used in its franchises. While this protects the brand, it also means franchisees have limited flexibility in sourcing products and must adhere to Crave's approval process, which may involve additional costs and time.