Under the Crave Franchise Agreement, what is the franchisee's responsibility regarding site selection?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2 Site Selection
- 2.2.1 If you do not already have possession of a location that we have approved upon your execution of this Agreement, then within ninety (90) days of the date this Agreement is executed you shall locate a site for the Restaurant that satisfies the site selection guidelines provided to you by us pursuant to Section 5.1 and submit to us in the form specified by us a description of the site, including evidence reasonably satisfactory to us demonstrating that the site satisfies our site selection guidelines, together with such other information and materials as we may reasonably require, including, but not limited to, a letter of intent or other evidence satisfactory to us which confirms your favorable prospects for obtaining the site. We shall have thirty (30) days after receipt of this information and materials to approve or decline, in our sole discretion, the proposed site as the location for the Restaurant. We may, if we determine it is necessary, conduct one (1) on-site evaluation of the proposed location for the Restaurant. No site may be used for the location of the Restaurant unless it is first approved in writing by us. You acknowledge and agree that our approval of a location for the Franchised Business is not a warranty or guaranty, express or implied, that you will achieve any particular level of success at the location or that your Restaurant will be profitable. Our approval of a location for the Restaurant only signifies that the location meets our then-current minimum criteria for a Crave Restaurant. We reserve the right to approve deviations from our site selection standards based on the individual factors and components of a particular site, but any such approvals shall be granted in our sole discretion. If you are unable to locate a site for your Restaurant within ninety (90) days after this Agreement is executed, we may provide you with an extension of this timeframe or we may terminate this Agreement.
- 2.2.2 If you elect to purchase the premises for the Franchised Business, you shall submit a copy of the proposed contract of sale to us for our written approval prior to its execution and shall furnish to us a copy of the executed contract of sale within ten (10) days after execution. If you will occupy the
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are primarily responsible for locating a suitable site for their restaurant. Specifically, if a franchisee does not already have an approved location when the Franchise Agreement is executed, they must find a site that meets Crave's site selection guidelines within 90 days of the agreement date.
The franchisee must then submit a description of the site to Crave, along with evidence that the site meets the franchisor's guidelines and any other required information. This submission may include a letter of intent or similar documentation demonstrating the franchisee's prospects for securing the site. Crave then has 30 days to approve or reject the proposed site at their sole discretion, and may conduct an on-site evaluation if deemed necessary. The franchisee cannot use any site that has not been approved in writing by Crave.
The FDD clarifies that Crave's approval of a site does not guarantee the franchisee's success or profitability at that location. Approval only indicates that the site meets Crave's minimum criteria at the time. Crave retains the right to approve deviations from its standard site selection criteria based on the specific characteristics of a site. If the franchisee fails to find a suitable site within the initial 90-day period, Crave may grant an extension or terminate the Franchise Agreement. If the franchisee chooses to purchase the premises, the proposed contract of sale must be submitted to Crave for written approval before execution, and a copy of the executed contract must be provided within 10 days of signing.