Under what state's laws is the Crave agreement construed?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
e General Business Law of the State of New York.
The parties hereto have duly executed, sealed, and delivered this Addendum dated FRANCHISOR: CRAVE FRANCHISING, LLC PRINCIPALS: 85 CRAVE FDD 2025 A
ADDENDUM TO THE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND MULTI-UNIT DEVELOPMENT AGREEMENT REQUIRED BY THE STATE OF SOUTH DAKOTA
In the State of South Dakota, we will defer the payment of the initial franchise fee, development fee, and any other initial payment until all of our material pre-opening obligations have been satisfied and until you open your business and it is operating. However, you must execute the Franchise Agreement prior to looking for a site or beginning training.
CRAVE FRANCHISING, LLC PRINCIPALS:
ADDENDUM REQUIRED BY THE COMMONWEALTH OF VIRGINIA
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for CRAVE Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
- Additional Disclosure: The following statements are added to Item 17.h:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement and development agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, the provision may not be enforceable.
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any right given to him under the franchise.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
The 2025 Crave Franchise Disclosure Document includes addenda for several states that address choice of law. Specifically, the addendum for Indiana states that Article 19 of the Franchise Agreement is amended such that jurisdiction and venue must be in Indiana if the franchisee requests it. Also, the addendum for Maryland states that the appropriate sections of the Franchise Agreement are amended to permit a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law and that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. Finally, the addendum for Virginia states that if any grounds for default or termination stated in the franchise agreement and development agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, the provision may not be enforceable.
These addenda indicate that while the Franchise Agreement likely contains a standard clause specifying a particular state's laws will govern the agreement, these provisions are modified by state law in certain jurisdictions. This is a common practice in franchising to ensure compliance with state-specific franchise laws, which often provide additional protections to franchisees.
A prospective Crave franchisee should carefully review the choice of law and forum selection provisions in the Franchise Agreement, as well as any state-specific addenda, to understand their rights and obligations. They should also consult with an attorney to determine the implications of these provisions and how they may affect their ability to resolve disputes with Crave.