Is the Designated Territory granted to a Crave franchisee exclusive?

According to Crave's 2025 Franchise Disclosure Document, the Designated Territory granted to a franchisee is not exclusive. The FDD explicitly states, "You will not receive an exclusive territory." This means that a Crave franchisee may face competition from other franchisees, outlets owned by Crave, other distribution channels, or competitive brands controlled by Crave.

Despite the non-exclusive nature of the territory, Crave states that during the term of the Franchise Agreement, it 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 permitted under the Franchise Agreement. However, there are several exceptions to this rule. Crave retains the right to operate or franchise others to operate restaurants or food trucks at Non-Traditional Sites such as gas stations, transportation facilities, military bases, sports facilities, amusement parks, educational facilities, hospitals, hotels, and casinos, even if these are located within a franchisee's Designated Territory.

Furthermore, Crave retains significant rights to conduct business activities under any name and in any geographic area, regardless of proximity to a franchisee's location or the economic impact on their business. This includes the right to sell products through alternative distribution channels like the internet, catalogs, grocery stores, and club stores, without providing any compensation to the franchisee. Prospective franchisees should carefully consider these limitations and potential sources of competition when evaluating the Crave franchise opportunity.