What is considered a 'Non-Traditional Site' where Crave can operate or franchise within my designated territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
1.5.1 Nothing in this Agreement will prohibit us from: (a) operating and/or franchising others to operate restaurants or other distribution models identified in whole or in part by the Proprietary Marks and/or utilizing the System in the Designated Territory that are located in gas stations or convenience stores; transportation facilities, including airports, train stations, subways and rail and bus stations; military bases and government offices; sports facilities, including stadiums and arenas; amusement parks, zoos and convention centers; car and truck rest stops and travel centers; educational facilities; recreational theme parks; hospitals; business or industrial foodservice venues; venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider; Indian reservations; casinos; or any similar captive market location not reasonably available to you ("Non-Traditional Site"); (b) awarding national, regional or local licenses to third parties to sell products under the Proprietary Marks in foodservice facilities primarily identified by the third party's trademark; (c) merchandising and distributing products identified by the Proprietary Marks in the Designated Territory through any method or channel of distribution other than through the operation of a dedicated restaurant, including distribution of proprietary products through grocery stores, club stores and similar stores; (d) selling and distributing products identified by the Proprietary Marks in the Designated Territory to restaurants or distribution channels other than a dedicated restaurant identified by the Proprietary Marks, provided those restaurants or distribution channels are not licensed to use the Proprietary Marks in connection with their retail sales; (e) selling products and services through other channels of distribution, including the internet, wholesale, mail order and catalogue; (f) developing and/or owning other franchise systems for the same or similar products and services using trade names and trademarks other than the Proprietary Marks; and (g) purchasing, being purchased by, merging or combining with, businesses that we deem to offer direct competition to Crave businesses.
1.5.2 You understand and acknowledge that if any Non-Traditional Site (as described above) 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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a Non-Traditional Site includes locations such as gas stations, convenience stores, transportation facilities (airports, train stations, etc.), military bases, government offices, sports facilities (stadiums, arenas), amusement parks, zoos, convention centers, car and truck rest stops, travel centers, educational facilities, recreational theme parks, hospitals, business or industrial foodservice venues, locations with master concessionaires or contract foodservice providers, Indian reservations, and casinos. These sites are characterized as captive market locations not generally accessible to franchisees.
Crave retains the right to operate or franchise others at these Non-Traditional Sites, even if they fall within a franchisee's designated territory. If a Non-Traditional Site exists within the physical boundaries of a franchisee's territory, the area occupied by the Non-Traditional Site is excluded from the franchisee's designated territory. This means the franchisee has no operating rights at that specific location.
This reservation of rights allows Crave to tap into diverse markets and distribution channels without being restricted by territorial agreements with franchisees. However, it also presents a risk to franchisees, as Crave can establish outlets in locations within or near their territory that could draw customers away from their dedicated Crave restaurant. Prospective franchisees should carefully consider the potential impact of these Non-Traditional Sites on their business before investing in a Crave franchise.