What standards and specifications must Crave franchisees comply with regarding the purchase of food, beverages, supplies, and equipment?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
(5) years during the term of this Agreement, except that if the Franchised Business is transferred pursuant to Article 14, we may request that the transferee remodel and/or redecorate the Franchised Business as described herein.
7.4 Approved Suppliers
You shall comply with all of our standards and specifications relating to the purchase of all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including point-ofsale and computer hardware and software systems) and other products used or offered for sale at the Franchised Business. Except as provided in Sections 7.6 and 7.7 with respect to certain materials bearing the Marks and proprietary products, you shall obtain such items from suppliers (including manufacturers, distributors and other sources) who continue to demonstrate the ability to meet our then-current standards and specifications for food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment and other items used or offered for sale at Franchised Businesses and who possess adequate quality controls and capacity to supply your needs promptly and reliably; and who have been approved in writing by us prior to any purchases by you from any such supplier; and who have not thereafter been disapproved by us. You shall obtain equipment and installation of the self-serve beer tap wall for your Franchised Business only from our sole approved supplier. You shall obtain services for your Franchised Business' loyalty program and your electronic ordering mobile solution only from our sole approved supplier.
If you desire to purchase, lease or use any unapproved products or other items, or you desire to purchase or lease from an unapproved supplier, you shall submit to us a written request for approval of such product or supplier, or shall request the supplier itself to do so. You shall pay our then-current evaluation fee for each product or supplier you request to have approved, and you shall reimburse the reasonable expenses we incur related to our evaluation of the proposed product or supplier. You shall not purchase or lease any product or from any supplier until and unless such product or supplier has been approved in writing by us. We shall have the right to require that our representatives be permitted to inspect the
proposed supplier's facilities, and that samples from the supplier be delivered, either to us or to an independent laboratory designated by us, for testing. We reserve the right, at our option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke our approval upon the supplier's failure to continue to meet any of our then-current criteria. Nothing herein shall be construed to require us to approve any particular supplier.
You understand and acknowledge that we may periodically receive payments from approved suppliers, such as in the form of rebates, based on such approved suppliers' sales of products and services to our franchisees. We reserve the right to direct that any supplier rebates, refunds, advertising allowances or other consideration payable or paid as a result of your purchases of non-proprietary goods, services or equipment be paid to us or any affiliate that we may designate. If we do so, then you hereby acknowledge that you will not assert any interest in such monies.
7.5 Operation of Franchised Business in Compliance with Our Standards
To ensure that the highest degree of quality and service is maintained, you shall operate the Franchised Business in strict conformity with such of our methods, standards and specifications set forth in the Manual and as may from time to time otherwise be prescribed in writing. In particular, you also agree:
- 7.5.1 To sell or offer for sale all menu items, products and services required by us and in the method, manner and style of distribution prescribed by us and only as expressly authorized by us in writing in the Manual or otherwise in writing.
- 7.5.2 To sell and offer for sale only the menu items, products and services that have been expressly approved for sale in writing by us; to refrain from deviating from our standards and specifications without our prior written consent; and to discontinue selling and offering for sale any menu items, products or services which we may, in our sole discretion, disapprove in writing at any time. Notwithstanding the foregoing, you understand and agree that we have the right, in our sole discretion, to grant to certain Crave businesses variances from our standard menu to accommodate regional or local tastes or ingredients, and that nothing in this Agreement requires us to grant to you a similar variance.
- 7.5.3 To maintain in sufficient supply and to use and sell at all times only such food and beverage items, ingredients, other products, materials, merchandise, supplies and paper goods that conform to our standards and specifications; to prepare all menu items in accordance with our recipes and procedures for preparation contained in the Manual or other written directives, including, but not limited to, the prescribed measurements of ingredients;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must adhere to specific standards and specifications when purchasing food, beverage items, ingredients, supplies, materials, fixtures, furnishings, and equipment. These items must be obtained from suppliers who meet Crave's standards and specifications, demonstrate adequate quality controls and the capacity to reliably supply the franchisee's needs, and have been approved in writing by Crave. This approval must be in place before any purchases are made from the supplier. Crave retains the right to disapprove suppliers even after initial approval. Specifically, franchisees must obtain equipment and installation of the self-serve beer tap wall, as well as services for the loyalty program and electronic ordering mobile solution, exclusively from Crave's sole approved suppliers.
If a franchisee wishes to purchase or lease products or other items from an unapproved supplier, they must submit a written request for approval to Crave, or the supplier can do so themselves. The franchisee is responsible for paying Crave's evaluation fee for each product or supplier they want to have approved, and they must also reimburse Crave for any reasonable expenses incurred during the evaluation process. No purchases or leases can be made from unapproved suppliers until written approval is granted by Crave. Crave has the right to inspect the facilities of proposed suppliers and require samples for testing, either by Crave or an independent laboratory.
To ensure quality and service, Crave franchisees must operate in strict conformity with the methods, standards, and specifications set forth in the manual or as otherwise prescribed in writing by Crave. This includes selling only approved menu items, products, and services in the manner and style of distribution prescribed by Crave. Franchisees must refrain from deviating from these standards and specifications without prior written consent and must discontinue selling any items that Crave disapproves in writing. Crave is also permitted to remove samples of food and non-food items from the franchisee's inventory for testing to ensure compliance with standards. If the supplier of the item has not been previously approved or if the sample fails to conform to specifications, the franchisee may be required to bear the cost of testing.
Crave may grant variances from the standard menu to certain Crave businesses to accommodate regional or local tastes or ingredients, but is not required to grant similar variances to all franchisees. Crave may also make available for resale to customers certain merchandise identifying the system, such as logoed merchandise and memorabilia, and other proprietary products in sufficient amounts to meet customer demand, and may specify that franchisees must purchase such merchandise from Crave, its affiliate, or another designated supplier. Furthermore, franchisees are required to purchase or lease and install all fixtures, furnishings, equipment (including point-of-sale and computer hardware and software systems), décor items, signs, delivery vehicles, and related items as Crave may reasonably direct from time to time in the manual or otherwise in writing.