For a Crave restaurant, what is considered the commencement of construction or remodeling?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall commence and diligently pursue construction or remodeling (as applicable) of the Restaurant. Commencement of construction shall be defined as the time at which any site work is initiated by you or on your behalf at the location approved for the Restaurant. Site work includes, without limitation, paving of parking areas, installing outdoor lighting and sidewalks, extending utilities, demising of interior walls and demolishing of any existing premises. During the time of construction or remodeling, you shall provide us with such periodic reports regarding the progress of the construction or remodeling as may be reasonably requested by us. In addition, we may make such on-site inspections as we may deem reasonably necessary to evaluate such progress. You shall notify us of the scheduled date for completion of construction or remodeling no later than thirty (30) days prior to such date. Within a reasonable time after the date of completion of construction or remodeling, we may, at our option, conduct an inspection of the completed Restaurant. You acknowledge and agree that you will not open the Restaurant for business without our written authorization and that authorization to open shall be conditioned upon your strict compliance with this Agreement and your certification to us, in the form attached hereto as Attachment 7, that the Restaurant has been constructed in compliance with the Americans with Disabilities Act.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the commencement of construction or remodeling for a Crave restaurant is defined as the point when any site work begins, either directly by the franchisee or by someone on their behalf, at the approved location. This site work encompasses a range of activities.
Specifically, the FDD clarifies that site work includes, but isn't limited to, paving parking areas, installing outdoor lighting and sidewalks, extending utilities to the site, demising interior walls to define spaces, and demolishing any existing structures on the premises. This definition is important for franchisees as it marks the official start of their build-out phase, triggering certain obligations and timelines outlined in the franchise agreement.
During the construction or remodeling phase, Crave franchisees are required to provide periodic progress reports to Crave. Crave also retains the right to conduct on-site inspections to assess the progress of the work. Furthermore, franchisees must notify Crave of the scheduled completion date at least 30 days in advance. The franchisee cannot open for business without written authorization from Crave, which is contingent upon strict compliance with the franchise agreement and certification that the restaurant meets Americans with Disabilities Act (ADA) standards.