Under what conditions is Crave authorized to disclose data from a franchisee's reports?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby authorize (and agree to execute any other documents deemed necessary to effect such authorization) all banks, financial institutions, businesses, suppliers, manufacturers, contractors, vendors and other persons or entities with which you do business to disclose to us any requested financial information in their possession relating to you or the Franchised Business. You authorize us to disclose data from your reports, if we determine, in our sole and absolute discretion, that such disclosure is necessary or advisable, which disclosure may include disclosure to prospective or existing franchisees or other third parties, and you acknowledge and agree that such disclosure may include publishing of the financial performance of your Franchised Business in franchise disclosure document(s) issued by us following the Effective Date hereof.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave is authorized to disclose data from a franchisee's reports if Crave determines, in its sole and absolute discretion, that such disclosure is necessary or advisable. This authorization extends to all banks, financial institutions, businesses, suppliers, manufacturers, contractors, vendors, and other entities with which the franchisee does business, allowing them to disclose any requested financial information about the franchisee or the franchised business to Crave.
This disclosure may include sharing information with prospective or existing franchisees or other third parties. Furthermore, Crave is permitted to publish the financial performance of a franchisee's Crave business in its franchise disclosure documents issued after the effective date of the franchise agreement.
As a practical matter, this means that a prospective Crave franchisee should be aware that their financial data could be shared with others in the system or with potential investors. While this level of transparency can help potential franchisees assess the performance of existing locations, it also carries a risk to the franchisee's financial privacy. Franchisees should consider the implications of this clause and how it might affect their business and financial standing.