Who bears the expense of complying with recall instructions for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.6 Product Recalls. If Crave Cookies Franchising or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Crave Cookies Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with complying with product recall instructions. If Crave Cookies or any vendor, supplier, or manufacturer issues a recall notice for an item used or sold in the franchisee's business due to it being defective or dangerous, the franchisee must immediately stop using or selling the item.
The franchisee is then obligated to comply with all instructions from Crave Cookies or the item's vendor, supplier, or manufacturer regarding the recall, repair, or replacement of the item. The FDD is explicit that the franchisee bears these costs themselves.
This means that a Crave Cookies franchisee will need to factor in the potential costs of recalls when assessing the financial viability of the franchise. These costs could include the expense of removing the product from shelves, disposing of the recalled items, and any costs associated with repairing or replacing the defective product. Franchisees should maintain adequate insurance coverage and have a plan in place to handle product recalls efficiently to minimize disruption to their business.