Under what condition can Crave modify the system without materially and unreasonably increasing a franchisee's obligations?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and agree that the System must not remain static if it is to meet, without limitation, presently unforeseen changes in technology, competitive circumstances, demographics, populations, consumer trends, societal trends and other marketplace variables, and if it is to best serve the interests of us, you and all other franchisees. Accordingly, you expressly understand and agree that we may from time to time change the components of the System including, but not limited to, altering the products, programs, services, methods, standards, forms, policies and procedures of that System; abandoning the System altogether in favor of another system in connection with a merger, acquisition, other business combination or for other reasons; adding to, deleting from or modifying those products, programs and services which your Franchised Business is authorized and required to offer; modifying or substituting entirely the building, premises, equipment, signage, trade dress, décor, color schemes and uniform specifications and all other unit construction, design, appearance and operation attributes which you are required to observe hereunder; and changing, improving, modifying, or substituting other words or designs for, the Marks. You expressly agree to comply with any such modifications, changes, additions, deletions, substitutions and alterations; provided, however, that such changes shall not materially and unreasonably increase your obligations hereunder.
You shall accept, use and effectuate any such changes or modifications to, or substitution of, the System as if they were part of the System at the time that this Agreement was executed.
We shall not be liable to you for any expenses, losses or damages sustained by you as a result of any of the modifications contemplated hereby. You hereby covenant not to commence or join in any litigation or other proceeding against us or any third party complaining of any such modifications or seeking expenses, losses or damages caused thereby. You expressly waive any claims, demands or damages arising from or related to the foregoing activities including, without limitation, any claim of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave can modify its operating system to adapt to changes in technology, competition, consumer trends, and other market variables. This includes changes to products, programs, services, methods, standards, forms, policies, and procedures. Crave can also abandon the current system for another due to a merger, acquisition, or other business reasons. They can modify the products and services franchisees are authorized to offer, and change the building design, equipment, signage, and trade dress.
However, Crave is not at liberty to make changes that would materially and unreasonably increase the franchisee's obligations. Franchisees must accept and implement these changes as if they were part of the original agreement.
Crave will not be liable for any expenses, losses, or damages incurred by the franchisee due to these modifications. The franchisee also agrees not to participate in any litigation against Crave or any third party regarding these modifications, waiving any claims related to breach of contract, fiduciary duty, fraud, or breach of good faith.