Is Crave responsible if following their required pricing does not enhance sales or profits for the franchisee?

According to Crave's 2025 Franchise Disclosure Document, Crave has the right to determine the maximum prices for goods, products, and services offered at the franchised business. The FDD explicitly states that this pricing control may reduce the anticipated profit of the franchisee's business. This means that franchisees are obligated to adhere to Crave's pricing strategies, even if those strategies do not lead to increased sales or profits.

This aspect of the franchise agreement carries significant implications for prospective franchisees. While brand consistency and standardized pricing can be beneficial, franchisees must recognize that Crave does not guarantee profitability. Franchisees bear the risk that the franchisor-mandated pricing may not align with local market conditions or cover their operating costs, potentially impacting their financial performance.

It is common in franchising for franchisors to set pricing guidelines to maintain brand uniformity and customer expectations. However, the degree of control can vary. Some franchisors offer more flexibility, allowing franchisees to adjust prices based on local factors. Given Crave's explicit statement about potential profit reduction due to pricing controls, prospective franchisees should carefully evaluate their potential market and financial projections to determine if the franchised business can be profitable under Crave's pricing structure. They should also discuss this issue with existing franchisees to understand their experiences with pricing and profitability.