How is the Designated Territory defined for a Crave Food Truck?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
If you operate a Food Truck, your Franchise Agreement will specify a Designated Territory that will be defined by a mileage radius based on the municipality in which you wish to operate and the general population density in that municipality. If the municipality you select is in a rural area, your Designated Territory could have a mileage radius around a central point of up to 50 miles. If you select a municipality that is considered suburban or urban, your Designated Territory could be limited to a mileage radius around a central point of up to five miles or up to ten city blocks.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
During the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate, a Restaurant or Food Truck in the Designated Territory, except as may be permitted under the Franchise Agreement and those exceptions are described below. There are no
circumstances under which the Designated Territory may be altered before your Franchise Agreement expires or is terminated.
Your Restaurant may not be relocated, and your Food Truck may not relocate to another municipality or operate outside the Designated Territory, without our prior written consent. If, during the term of the Franchise Agreement, you wish to relocate your Restaurant or operate your Food Truck in a different municipality, or if the Restaurant is damaged or destroyed and cannot be repaired within 60 days, you must submit to us in writing the materials we require to consider your request, including information concerning the proposed new location for the Restaurant or new municipality for the Food Truck. You must also meet certain other requirements, such as being in compliance with the Franchise Agreement, the new location meets our then-current requirements for a Crave Restaurant or the new municipality meets our then-current requirements for a Crave Food Truck, and the new location (for a Restaurant) is located within your Designated Territory, and you must sign our then-current form of Franchise Agreement. If we permit you to relocate, you will not pay a new initial franchise fee when you sign the new Franchise Agreement, but you must pay our relocation fee.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Designated Territory for a Food Truck is defined by a mileage radius based on the municipality in which the franchisee wishes to operate and the general population density in that municipality. If the selected municipality is in a rural area, the Designated Territory could have a mileage radius around a central point of up to 50 miles. Conversely, if the municipality is considered suburban or urban, the Designated Territory could be limited to a mileage radius around a central point of up to five miles or up to ten city blocks.
It is important to note that the franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that Crave owns, or from other channels of distribution or competitive brands that Crave controls. During the term of the Franchise Agreement, Crave will not establish or operate, nor license any other person to establish or operate, a Restaurant or Food Truck in the Designated Territory, except as may be permitted under the Franchise Agreement.
Furthermore, the FDD states that there are no circumstances under which the Designated Territory may be altered before the Franchise Agreement expires or is terminated. The Food Truck may not relocate to another municipality or operate outside the Designated Territory, without Crave's prior written consent. If the franchisee wishes to operate the Food Truck in a different municipality, they must submit a written request to Crave with the required materials for consideration. The new municipality must meet Crave's then-current requirements for a Crave Food Truck.