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Under what circumstances might Crave require a franchisee to designate a replacement for initial training?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

If the initial training program is (i) not completed within the timeframe required by us, (ii) not satisfactorily completed by the General Manager, or (iii) if we in our reasonable business judgment, based upon the performance of the General Manager, determine that the training program cannot be satisfactorily completed by any such person, you shall designate a replacement to satisfactorily complete such training at your expense, including payment of our then-current training fee.

If the replacement General Manager cannot complete the initial training program to our satisfaction, we have the right to terminate this Agreement.

Any General Manager subsequently designated by you shall also receive and complete such initial training before you will be permitted to open your Franchised Business.

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 designate a replacement for initial training under specific circumstances related to the General Manager's performance or completion of the training program. Crave determines, in its reasonable discretion, whether the franchisee and their General Manager have satisfactorily completed the initial training.

Specifically, Crave may require the franchisee to designate a replacement if the initial training program is not completed within the required timeframe, if the General Manager does not satisfactorily complete the training, or if Crave reasonably judges that the General Manager will not be able to satisfactorily complete the program based on their performance. In any of these cases, the franchisee must designate a replacement to complete the training at their own expense, including paying Crave's then-current training fee.

It is important to note that if the replacement General Manager also fails to complete the initial training program to Crave's satisfaction, Crave reserves the right to terminate the Franchise Agreement. Furthermore, any subsequently designated manager must also complete the initial training before the Franchised Business is allowed to open. This ensures that all managers meet Crave's standards for operating the franchise. The franchisee is responsible for all expenses associated with training, including travel, lodging, meals, and wages.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.