What does the Crave agreement grant to the franchisee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor and Franchisee are parties to a franchise agreement executed on or about the Effective Date hereof (the "Franchise Agreement"), whereby Franchisor has granted Franchisee the right to use certain trademarks, including, the registered trademark "CRAVE Hot Dogs Barbecue" and design mark, and certain proprietary products, services, promotions and methods (the "System") to establish and operate a Crave restaurant (the "Restaurant") pursuant to the System**;**
WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Crave business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, software accounts, and use telephone listings linked to the Crave brand.
"Upon the execution of this Agreement, you shall be assigned a territory (the "Designated Territory") that will also be described in Exhibit A of the Addendum. You understand and acknowledge that if your Designated Territory includes a Non-Traditional Site (as described in Section 1.5 of the Franchise Agreement), the Non-Traditional Site is not a part of your Designated Territory and you shall have no right to operate the Food Truck at any Non-Traditional Site without our prior written permission."
- 4.4 We and our affiliates retain all rights not expressly granted to you with respect to Crave outlets, the Marks and the sale of any goods and services, anywhere in the world, including, without limitation, the right:
- 4.4.1 to produce, offer and sell and to grant others the right to produce, offer and sell the products offered at dedicated Crave outlets and any other goods displaying the Marks or other trade and service marks through alternative distribution channels, as described below, both within and outside the Development Area, and under any terms and conditions we deem appropriate. "Alternative distribution channels" include, but are not limited to, the internet, catalog sales, grocery stores, club stores, specialty food stores, telemarketing or other direct marketing sales;
- 4.4.2 to operate and to grant others the right to operate dedicated Crave outlets located outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to a Franchised Business;
- 4.4.3 to operate and to grant others the right to operate dedicated Crave outlets at Non-Traditional Sites within and outside the Development Area under any terms and conditions we deem appropriate, subject to the right of first refusal described in Section 6.2;
2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave FDD, the franchise agreement grants the franchisee the right to establish a Crave franchise. Specifically, the franchisee gains the right to use Crave's trademarks, including the registered trademark "CRAVE Hot Dogs Barbecue" and design mark. The agreement also allows the franchisee to utilize Crave's proprietary products, services, promotions, and methods, collectively known as the "System," to establish and operate a Crave restaurant. This Restaurant will operate pursuant to the System.
The agreement also addresses the use of internet-based advertising, social media accounts, software accounts, and telephone listings linked to the Crave brand. The franchisee is allowed to conduct internet-based advertising, maintain social media accounts and software accounts, and use telephone listings linked to the Crave brand. However, upon termination of the franchise agreement, the franchisee must transfer all rights and interests in these online assets, including domain names, social media accounts, software accounts, and telephone numbers, to Crave.
Furthermore, the agreement outlines territorial rights, stating that the franchisee will be assigned a designated territory. However, this territory may exclude Non-Traditional Sites, where the franchisee would need prior written permission to operate a food truck. Crave retains rights not expressly granted to the franchisee, including the right to sell products through alternative distribution channels like the internet, grocery stores, and telemarketing, both within and outside the designated territory. Crave also retains the right to operate or franchise others to operate Crave outlets outside the designated territory and at Non-Traditional Sites, subject to certain rights of first refusal.