Is there a reasonable basis required for Crave to provide information about the potential financial performance of its franchised outlets?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor owned outlets, if there is a reasonable basis for the information, and if the information is included in the Franchise Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements
the information provided in this Item 19, for example, by providing information about performance at a particular location or under particular circumstances.
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Samantha Rincione at 159 N. Wolcott St. Suite 133 Casper, WY 82601, and (516)316-7420, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 56–57)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if Crave provides information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, there must be a reasonable basis for the information. This is in accordance with the FTC's Franchise Rule.
The FDD specifies that financial performance information differing from what is included in Item 19 is only allowed under specific conditions. These conditions are if Crave provides the actual records of an existing outlet a prospective franchisee is considering buying, or if Crave supplements the information provided in Item 19 with details about performance at a particular location or under particular circumstances.
Crave states that it does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, and does not authorize employees or representatives to make such representations either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Crave may provide the actual records of that outlet. The FDD also instructs prospective franchisees to report to Crave's management, the Federal Trade Commission, and appropriate state regulatory agencies if they receive any other financial performance information or projections of future income.