Besides the Franchisee's Designated Territory, what other geographic areas are considered when calculating receipts for Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ove) is located within the physical boundaries of your Designated Territory, then the premises of this Non-Traditional Site will not be included in your Designated Territory and you will have no rights to this Non-Traditional Site.
- 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, the franchisor and its affiliates have broad rights to conduct business activities under any name and in any geographic area, regardless of proximity to a franchisee's business or the economic effect on that business. Specifically, Crave retains the right to operate or franchise others to operate Crave businesses at any location outside of a franchisee's designated territory during the initial term of the agreement.
After the franchise agreement terminates or expires, Crave can operate or franchise others to operate Crave businesses at any location, including locations inside the former franchisee's designated territory. Moreover, Crave can operate or franchise other types of restaurants or distribution models that are not dedicated Crave Restaurants at any location, both during and after the initial term.
These provisions mean that a Crave franchisee's exclusive territory is limited. Crave can establish alternative distribution channels, such as internet sales or sales through grocery stores, both within and outside the Development Area. Crave can also operate or franchise dedicated Crave outlets at Non-Traditional Sites within and outside the Development Area. A prospective franchisee should be aware that Crave retains significant rights to operate and expand, potentially in competition with existing franchisees, especially through alternative channels and after the franchise agreement term.