Under what circumstances will a Crave franchisee be required to reimburse Crave for the costs and expenses connected with an inspection?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
al or other written directives, including, but not limited to, the prescribed measurements of ingredients; and to refrain from deviating from our standards and specifications by the use or offer of non-conforming items or differing amounts of any items, without our prior written consent.
- 7.5.4 To 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, without payment therefor, in amounts reasonably necessary for testing by us or an independent laboratory to determine whether such samples meet our then-current standards and specifications. In addition to any other remedies we may have under this Agreement, we may require you to bear the cost of such testing if the supplier of the item has not previously been approved by us or if the sample fails to conform with our reasonable specifications.
- 7.5.5 To purchase or lease and install, at your expense, all fixtures, furnishings, equipment (including point-of-sale and computer hardware and software systems), décor items, signs, delivery vehicles, and related items as we may reasonably direct from time to time in the Manual or otherwise in writing; and to refrain from installing or permitting to be installed on or about the Franchised
Business premises, without our prior written consent, any fixtures, furnishings, equipment, delivery vehicles, décor items, signs, games, vending machines or other items not previously approved as meeting our standards and specifications. If any of the property described above is leased by you from a third party, such lease shall be approved by us, in writing, prior to execution.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee may be required to bear the cost of testing samples taken by Crave or its agents from the franchisee's inventory. This applies if the supplier of the item has not been previously approved by Crave or if the sample fails to conform to Crave's specifications.
Additionally, if a Crave franchisee fails to correct deficiencies detected during an inspection within 15 days of notice, Crave has the right to correct those deficiencies themselves and charge the franchisee a reasonable fee for their expenses. This fee is payable immediately upon demand. Crave also has the option to require the franchisee to attend remedial training at Crave's headquarters or send a trainer to the franchisee's location for remedial training, with the franchisee bearing the associated expenses, including training fees, per diem fees, and travel and living expenses.
These provisions mean that a Crave franchisee needs to ensure compliance with Crave's standards and specifications regarding suppliers and product quality to avoid incurring testing costs. Furthermore, franchisees must promptly address any deficiencies identified during inspections to avoid additional fees for corrective actions taken by Crave and potential remedial training expenses. This highlights the importance of maintaining consistent quality and adhering to Crave's operational standards to minimize unexpected costs.