What constitutes a 'Competitive Business' according to the Crave Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations or joint ventures), advise, assist or make loans to, any business located within the United States, its territories, states or commonwealths, or any other country, province, state or geographic area in which we have used, sought registration of or registered the same or similar Marks or operates or licenses others to operate a business under the same or similar Marks, which business is of a character and concept similar to the Franchised Business, including a food service business which offers and sells the same or substantially similar food products (a "Competitive Business") without our prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave Franchise Disclosure Document, a 'Competitive Business' is defined as any business located within the United States, its territories, states, or commonwealths, or any other country, province, state, or geographic area in which Crave has used, sought registration of, or registered similar marks. This includes any business that Crave operates or licenses others to operate under the same or similar marks.
In practical terms, this definition encompasses any food service business with a similar concept to Crave, particularly those offering and selling the same or substantially similar food products. This restriction applies if the franchisee has a financial interest in, advises, assists, or makes loans to such a business, without Crave's prior written consent.
This clause is designed to protect Crave's market share, brand recognition, and the overall integrity of its franchise system. It prevents franchisees from directly competing with the Crave brand, either during the term of their franchise agreement or for a specified period afterward, ensuring that franchisees remain committed to the success of their Crave outlet and do not divert resources or customers to competing ventures. Franchisees need to be aware of these restrictions, especially if they have prior experience or interests in the food service industry.