How do the restrictions on suppliers for Crave (Item 8) relate to the ongoing fees (Item 6)?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Relocation Fee | $5,000 | With request for approval of relocation | If you wish to relocate your Restaurant or operate your Food Truck in a different municipality. |
| Inspection / Product and Supplier Evaluation | $250 per product or supplier to be evaluated, plus reimbursement of our expenses | On demand | Payable if you request that we evaluate a product or supplier that we have not previously approved and that you want to use for your Franchised Business. Payable also if we determine that your Franchised Business is offering items that do not conform to our specifications. |
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Item 8 outlines restrictions on where franchisees can source products and services, while Item 6 details various fees franchisees must pay. These two items are connected because Crave retains the right to evaluate and approve suppliers, and franchisees may incur fees if they want Crave to evaluate a new supplier or product. Specifically, if a franchisee wants to use a product or supplier not already approved by Crave, they may request an evaluation, which incurs a fee of $250 per product or supplier, plus reimbursement of Crave's expenses.
This evaluation fee, described in Item 6, is directly linked to the supplier restrictions outlined in Item 8. Crave mandates that franchisees use only approved suppliers to maintain quality and uniformity. If a franchisee deviates from this and offers non-conforming items, they may also be charged an inspection fee. This gives Crave control over its brand standards and allows them to generate revenue through supplier evaluations.
Furthermore, Item 8 states that Crave can remove samples of food or non-food items from the franchisee's business for testing. If the supplier of the item has not been previously approved or if the sample fails to meet Crave's standards, the franchisee may be required to reimburse Crave's costs for the testing. This reinforces Crave's control over suppliers and product quality, and it creates a financial implication for franchisees who do not adhere to the approved supplier list. This system ensures that Crave maintains its brand standards while also creating potential revenue streams through evaluations and testing reimbursements.