Who is responsible for the expenses associated with complying with a product recall for Crave Cookies?
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 all expenses associated with complying with a product recall. Specifically, if Crave Cookies or any vendor, supplier, or manufacturer issues a recall notice for an item used or sold in the franchisee's business, 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 recalled item. This includes managing the recall, repairing the item, and/or replacing the item.
Critically, the FDD states that the franchisee must handle all of these actions "at its own expense." This means the franchisee will bear the full financial burden of complying with any product recall affecting their Crave Cookies business. This is a standard practice in franchising, as the franchisee typically controls the daily operations and product handling at their specific location.