What is the dependency between the Crave Development Agreement and the Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
"WHEREAS**, Franchisee desires to enter into a franchise agreement with Franchisor for a Crave business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, software accounts, and use telephone listings linked to the Crave brand.
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;
NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions
All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
2. Internet Advertising and Telephone Accounts
- 2.1 Interest in Websites, Social Media, and Software Accounts and Other Electronic Listings. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, software accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.
- 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Development Agreement authorizes the Multi-Unit Developer to establish and operate Crave outlets, but only through individual Franchise Agreements. The Development Agreement itself does not grant the right to use Crave's trademarks or system; these rights are only obtained upon the execution of each Franchise Agreement.
For each location a developer wants to open, they must execute a separate Franchise Agreement. The initial Franchise Agreement may be signed contemporaneously with the Development Agreement. Subsequent Franchise Agreements must be the then-current version, with any non-material changes required by law. Crave requires the properly executed Franchise Agreement with the appropriate number of copies within ten days of delivery.
Crave states that it would not enter into the Franchise Agreement without the franchisee's agreement to comply with all the terms and provisions of the Development Agreement. Upon termination of the Franchise Agreement, the franchisee must transfer all rights and interest in electronic advertising and telephone listings to Crave.