Under what conditions might a Crave franchisee be required to reimburse Crave for the cost of testing samples?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You must 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 free of charge for testing by us or by an independent laboratory to determine whether the samples meet our then-current standards and specifications. In addition to any other remedies we may have, we may require you to reimburse our costs for the testing if we have not previously approved the supplier of the item or if the sample fails to conform to our specifications.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Crave for the costs of testing samples taken from their inventory or Franchised Business. This reimbursement is contingent upon two specific conditions. First, if the franchisee has not previously obtained approval from Crave for the supplier of the item being tested, they may be required to cover the testing costs. Second, even if the supplier was previously approved, if the sample taken fails to meet Crave's then-current standards and specifications, the franchisee may be responsible for reimbursing the testing expenses.
This policy ensures that Crave franchisees adhere to the brand's quality standards and source products from approved suppliers. By reserving the right to test samples and charge franchisees for testing costs under certain conditions, Crave maintains control over the quality and consistency of products used and sold within the franchise system. This protects the brand's reputation and ensures customers receive a consistent experience across all locations.
For a prospective Crave franchisee, this means they should prioritize sourcing products from suppliers already approved by Crave to avoid potential reimbursement costs for testing. If a franchisee wishes to use a new supplier or product, they should seek approval from Crave beforehand. Furthermore, franchisees should ensure that all products, regardless of the supplier, consistently meet Crave's quality standards to avoid failing sample testing and incurring additional expenses. This requirement underscores the importance of maintaining strict quality control measures within the franchise.
It is important to note that Crave retains other remedies in addition to the reimbursement of testing costs if a franchisee fails to comply with the brand's standards and specifications. This highlights the significance of adhering to Crave's guidelines and maintaining open communication with the franchisor regarding any deviations from approved suppliers or product standards.