Who is required to sign the Crave Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer the right to establish and operate a Restaurant or Food Truck under the terms of a single unit franchise agreement within a designated territory (the "Franchise Agreement"). Our current form of Franchise Agreement, Food Truck Addendum, and Commercial Sub-Lease Agreement are Exhibits B-1, B-2, and B-3 of this Disclosure Document. You may be an individual, corporation, partnership, or other form of legal entity. If you are an entity, then under the Franchise Agreement, each of your owners would be characterized as Franchisee's Principals (referred to in this Disclosure Document as "your Principals"). The Franchise Agreement is signed by us, by you, and individually by each of your Principals. By signing the Franchise Agreement, your Principals agree to be individually bound by the obligations contained in the Franchise Agreement. Depending on the type of business activities in which you or your Principals may be involved, we may require you or your Principals to sign additional confidentiality and noncompetition agreements.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–9)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Franchise Agreement must be signed by Crave Franchising, LLC as the franchisor, the franchisee (you), and individually by each of the franchisee's Principals. The FDD defines 'your Principals' as each of your owners if the franchisee is a corporation, partnership, or other entity. By signing the Franchise Agreement, the franchisee's Principals agree to be individually bound by the obligations outlined in the agreement.
This requirement ensures that all individuals with a significant ownership stake in the franchise are personally liable for upholding the terms of the agreement. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and accountability. It also means that the personal assets of the Principals could be at risk if the franchise fails to meet its obligations under the Franchise Agreement.
Depending on the business activities of the franchisee or their Principals, Crave may also require them to sign additional confidentiality and noncompetition agreements. This is to protect Crave's proprietary information and prevent unfair competition. Prospective franchisees should carefully review all agreements and understand their obligations before signing.
For franchisees considering a multi-unit development agreement, a Franchise Agreement must be signed for each Crave franchise developed. The Franchise Agreement for the first franchise is signed at the same time as the Multi-Unit Development Agreement. For subsequent franchises, the franchisee must sign the form of Franchise Agreement that Crave is offering to new franchisees at that time, which may differ from the original agreement.