Under what circumstances can the
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to protect persons or property, or our reputation or goodwill, or the reputation or goodwill of others, we may, at any time and without notice, as we in our reasonable judgment deem appropriate, consent or agree to settlements or take such other remedial or corrective action as we deem expedient with respect to the action, suit, proceeding, claim, demand, inquiry or investigation if, in our reasonable judgment, there are reasonable grounds to believe that:
- 15.3.1 any of the acts or circumstances enumerated in Section 15.1.1 through 15.1.4 above have occurred; or
- 15.3.2 any act, error, or omission as described in Section 15.1.5 may result directly or indirectly in damage, injury, or harm to the System, any person or any property.
15.4 Losses and Expenses
All losses and expenses incurred under this Article 15 shall be chargeable to and paid by you or the Principals pursuant to your obligations of indemnity under this Section, regardless of any actions, activity or defense undertaken by us or the subsequent success or failure of such actions, activity, or defense.
As used in this Article 15, the phrase "losses and expenses" shall include, without limitation, all losses, compensatory, exemplary or punitive damages, fines, charges, costs, expenses, lost profits, reasonable attorneys' fees, court costs, settlement amounts, judgments, compensation for damages to our reputation and goodwill, costs of or resulting from delays, financing, costs of advertising material and media time/space, and costs of changing, substituting or replacing the same, and any and all expenses of recall, refunds, compensation, public notices and other such amounts incurred in connection with the matters described.
15.5 Recovery from Third Parties
Under no circumstances shall the Indemnitees be required or obligated to seek recovery from third parties or otherwise mitigate their losses in order to maintain a claim against you or any of the Principals. You and the Principals agree that the failure to pursue such recovery or mitigate loss will in no way reduce the amounts recoverable from you or any of the Principals by the Indemnitees.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Article 15 outlines circumstances in which Crave may settle claims. Crave may consent to settlements or take remedial action without notice if they believe there are reasonable grounds to protect persons, property, their reputation, or the reputation of others. This action can be taken regarding any action, suit, proceeding, claim, demand, inquiry, or investigation.
This means that Crave retains the right to manage legal and other claims to protect the brand and its stakeholders. As a franchisee, you may not have control over how certain claims are handled, even if they directly affect your franchise.
Crave is not obligated to seek recovery from third parties to reduce claims against the franchisee. The franchisee is responsible for all losses and expenses incurred under Article 15, regardless of any actions taken by Crave or the success of those actions. This includes all losses, damages, fines, costs, lost profits, attorney's fees, and other expenses related to the described matters.