When considering feedback from Crave Cookies franchisees, what should potential franchisees be aware of regarding restrictions on communication?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| In some instances, current and former franchisees sign provisions restricting their ability | |
|---|---|
| to speak only about their experience with Crave Cookies Franchising, LLC. You may wish to | |
| speak with current and former franchisees, but be aware that not all such franchisees will be able | |
| to communicate with you. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, prospective franchisees should be aware that some current and former franchisees may have signed agreements that limit their ability to discuss their experiences with the franchise. This means that not all franchisees will be able to communicate openly with potential franchisees. This is a crucial point to consider when conducting due diligence.
It is common practice for franchisors to include confidentiality or non-disparagement clauses in their franchise agreements or settlement agreements with franchisees. These clauses can restrict what franchisees can say about their experiences, both positive and negative. The FDD advises potential franchisees to speak with current and former franchisees, but it also cautions that some of these individuals may be restricted from fully disclosing their experiences.
For a prospective Crave Cookies franchisee, this means that the feedback received from current and former franchisees may be incomplete or biased. It is essential to recognize this limitation and to seek information from a variety of sources, not just those provided by the franchisor. Potential franchisees should attempt to contact a wide range of franchisees, if possible, to get a more balanced view of the Crave Cookies franchise system.
To gain a comprehensive understanding, prospective franchisees should ask Crave Cookies directly about the number of franchisees who have signed such restrictive provisions and the general nature of those restrictions. Understanding the extent and nature of these communication limitations is vital for making an informed investment decision.