After the Crave agreement terminates or expires, can Crave operate businesses at any location, including locations inside the Designated Territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.5.3 This Section 1.5 does not prohibit us or our affiliates from: (a) operating and franchising others to operate, during the Initial Term, Crave businesses at any location outside of the Designated Territory; (b) operating and franchising others to operate, after this Agreement terminates or expires, Crave businesses at any location, including locations inside the Designated Territory; and (c) operating and franchising others to operate at any location, during or after the Initial Term, any type of restaurant or distribution model other than a dedicated Crave Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, after the franchise agreement terminates or expires, Crave has the right to operate Crave businesses at any location, including locations inside the Designated Territory. This means that upon the conclusion of the franchise agreement, Crave is not restricted from establishing new outlets, even in areas that were previously exclusive to the franchisee.
This clause has significant implications for prospective franchisees. While franchisees may have an exclusive territory during the term of their agreement, this exclusivity ends when the agreement expires or is terminated. Crave retains the right to develop and operate its own outlets or grant franchises to others within that same territory. This could lead to increased competition for the former franchisee if they choose to continue operating in the same area under a different brand or business model.
It is important for potential franchisees to understand that the value of their franchise is tied to the duration of the agreement. Upon termination or expiration, the franchisor can directly compete in the same market. This is a fairly standard practice in franchising, as franchisors typically want the flexibility to expand their brand's presence and market share without being permanently restricted by past agreements.