Does Crab N Spice grant franchisees an exclusive territory?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
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Territory Protection
We grant you an exclusive territory. In your territory, we will not open a Crab N Spice outlet, nor license or franchise another party to open a Crab N Spice outlet. The continuation of your territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit us to modify your territorial rights.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Soliciting by You Outside Your Territory
There are no restrictions on you from soliciting or accepting orders from consumers outside of your territory, except that we reserve the right to control all internet-based marketing.
Source: Item 12 — TERRITORY (FDD pages 27–28)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, Crab N Spice grants franchisees an exclusive territory. Within this territory, Crab N Spice will not open nor license another party to open a Crab N Spice outlet. The continuation of territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit Crab N Spice to modify a franchisee's territorial rights. The franchise agreement will specify a territory, which will be determined by Crab N Spice, based on a 100,000-population center or a 5-mile radius from the location, whichever is less. Territories will be mapped based on the individual market circumstances for each unit sold.
However, Crab N Spice retains the right to solicit and accept orders from consumers inside the franchisee's territory through other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, using their principal trademarks or trademarks different from the ones the franchisee will use. The franchisee will not receive any compensation for these sales. There are no restrictions on the franchisee soliciting or accepting orders from consumers outside of their territory, except that Crab N Spice reserves the right to control all internet-based marketing.
Neither Crab N Spice nor its affiliates operate, franchise, or plan to operate or franchise a business under a different trademark selling similar goods or services. However, the franchise agreement does not prohibit them from doing so. The franchisee does not have the right to relocate their business, and Crab N Spice has no obligation to approve any request for relocation. Crab N Spice's policy is to approve relocation on a case-by-case basis, considering factors such as changes in demographics, profitability, or loss of premises due to circumstances beyond the franchisee's control.