How do the restrictions on suppliers for Crave (Item 8) relate to the litigation history (Item 3)?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
pan id="page-25-1">You must purchase or lease and install all fixtures, furnishings, equipment (including point-of-sales system and associated hardware and software), décor items, signs and related items we require, all of which must conform to the standards and specifications stated in our Confidential Operations Manual (the "Manual") or otherwise in writing, unless you have first obtained our written consent to do otherwise. You may not install or permit to be installed on the Restaurant premises, or on or in the Food Truck, any fixtures, furnishings, equipment, décor items, signs, games, vending machines or other items without our written consent or that do not comply with our specifications.
To make sure that the highest degree of quality and service is maintained, you must operate the Franchised Business in strict conformity with the methods, standards, and specifications that we prescribe in the Manual or otherwise in writing. You must maintain in sufficient supply and use and sell at all times only those food and beverage items, ingredients, products, materials, supplies and paper goods that meet our standards and specifications. All menu items must be prepared in accordance with the recipes and procedures specified in the Manual or other written materials. You must not deviate from these standards and specifications by the use or offer of non-conforming items, or differing amounts of any items, without obtaining our written consent first. We can, and expect to, modify our standards and specifications as we deem necessary. We will provide you notice in the Manual or otherwise in writing (such as via email) of any changes in our standards and/or specifications.
You must permit us or our agents, during normal business hours, to remove a reasonable number of samples of food or non-food items from your inventory or from the Franchised Business free of charge for testing by us or by an independent laboratory to determine whether the samples meet our then-current standards and specifications. In addition to any other remedies we may have, we may require you to reimburse our costs for the testing if we have not previously approved the supplier of the item or if the sample fails to conform to our specifications.
You must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including point-of-sale system and the associated hardware and software, and communication systems), and other products used or offered for sale at the Franchised Business solely from suppliers who demonstrate, to our continuing reasonable satisfaction, the ability to meet our then-current standards or in accordance with our standards and specifications. A complete list of our approved products and suppliers will be included in the Manual and is subject to change over time. We will provide you notice in the Manual or otherwise in writing (such as via email) of any changes to the lists of approved products and approved suppliers.
If you choose to install a self-serve beer tap wall, our sole approved supplier for the required selfserve beer tap wall equipment and installation services and for the support and maintenance of the beer wall in your Restaurant is PourMyBeer based in Chicago, Illinois. If you choose to install a self-serve beer tap wall, you must purchase all non-beer tap wall equipment, and all furniture and small wares from our designated supplier for these products, Burkett Restaurant Equipment & Supplies in Perrysburg, Ohio. You must also purchase or lease the eight-valve legacy system (bag-in-box) soda dispensing machine from The Coca-Cola Company, and it must include the dispenser for Gold Peak Tea. Food Truck businesses are not required to have a soda dispensing machine. If you choose to install a self-serve beer tap wall, you must use the Untappd App, through the designated supplier Untappd, in operating your Restaurant in order to update the tap beers on the beer wall and to communicate with the local beer community. Use of this app is not required for Food Truck or Express Restaurant businesses. All furniture must be purchased through East Coast Chair and Barstool in Mercer, PA.
You must use the Clover point-of-sale system, including all associated hardware and software, and Clover Network, Inc. in Sunnyvale, California, is our designated supplier for this system and for the Abreeze Reporting App. You must also participate in our Crave Loyalty Program and offer digital ordering and mobile services through our mobile application and self-order kiosks (kiosks in Restaurants only), and you must use our designated Applova App. The fees for this program and these services are also paid to Clover Network, Inc. If you choose to install Axe Throwing lanes, you must use Axebooker as your booking software for Axe Throwing.
You must use Provost Construction located in Norfolk, VA as your General Contractor. You must use Ni Design in Farmington, CT as your architect.
You must purchase or lease your Food Truck from our designated supplier, Master Chef Mobile Kitchens located in Hicksville, New York. Imperial Dade is the designated supplier of our logo'd paper products. None of our officers has an ownership interest in any of the above-named suppliers.
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.
We and/or our affiliates may develop for use in the System certain products which are prepared from confidential proprietary recipes and other proprietary products which bear the Marks.
What This Means (2025 FDD)
Based on the 2025 FDD, Crave franchisees face significant restrictions regarding their sources for products and services, as detailed in Item 8. These restrictions mandate that franchisees purchase or lease fixtures, furnishings, equipment, and décor items that conform to Crave's standards and specifications. Franchisees must also operate their franchised business in strict accordance with the methods, standards, and specifications prescribed in Crave's manual, using only approved food and beverage items, ingredients, products, materials, supplies, and paper goods. Crave retains the right to modify these standards and specifications and to test samples from the franchisee's inventory to ensure compliance.
Crave may establish strategic alliances or preferred vendor programs with suppliers, potentially limiting the number of approved suppliers franchisees can use. Franchisees are required to purchase or lease their Food Truck from Master Chef Mobile Kitchens located in Hicksville, New York, and Imperial Dade is the designated supplier of logo'd paper products. If a franchisee wishes to use a product or supplier not previously approved, they must submit a written request for approval, pay an evaluation fee, and reimburse Crave's costs related to testing and inspection. Crave can also re-inspect approved suppliers and revoke approval if they fail to meet current standards.
The FDD excerpts provided do not contain information in Item 3 pertaining to Crave's litigation history. Therefore, it is not possible to determine how the restrictions on suppliers outlined in Item 8 relate to any litigation history. A prospective franchisee should carefully review Item 3 of the FDD to understand Crave's litigation history and assess whether any past legal issues involved supplier relationships or compliance with brand standards. Understanding this potential connection is crucial for evaluating the risks and obligations associated with the franchise.