What is considered a 'Non-Traditional Site' where Crave can operate within my designated territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in the Franchise Agreement will prohibit us from: (1) operating and/or franchising others to operate restaurants or food trucks 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; hotels; 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 (a "Non-Traditional Site"); (2) 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; (3) 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 restaurant or food truck, including distribution of products (including any proprietary products) through grocery stores, club stores and similar stores; (4) selling and distributing products identified by the Proprietary Marks in the Designated Territory to restaurants other than Restaurants identified by the Proprietary Marks, regardless of whether the restaurants are licensed to use the Proprietary Marks in connection with their retail sales or not; (5) selling products and services through other channels of distribution, including the internet, wholesale, mail order and catalog; (6) 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 (7) purchasing, being purchased by, merging or combining with businesses that we deem to offer direct competition to Crave businesses. We are not required to pay you any consideration if we exercise any right specified above in the Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a Non-Traditional Site is defined as locations such as gas stations, convenience stores, transportation facilities (airports, train stations, subways, rail and bus stations), military bases, government offices, sports facilities (stadiums and arenas), amusement parks, zoos, convention centers, car and truck rest stops, travel centers, educational facilities, recreational theme parks, hospitals, hotels, business or industrial foodservice venues, locations with master concessionaires or contract foodservice providers, Indian reservations, casinos, or any similar captive market location not reasonably available to a franchisee.
Crave retains the right to operate or franchise others to operate restaurants or food trucks at these Non-Traditional Sites within a franchisee's designated territory. This means that even if a franchisee has a designated territory, Crave can still establish a presence in these specific locations, potentially creating competition within the franchisee's area.
It is important for prospective Crave franchisees to understand that their designated territory may not be exclusive due to the possibility of Non-Traditional Sites operating within it. This could impact the franchisee's potential customer base and revenue. Franchisees should carefully consider the implications of Non-Traditional Sites when evaluating a potential location and its associated territory.