Does the Crave Development Agreement automatically grant a license to use the Crave Marks and System?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that:
- 7.1 Except as otherwise provided herein, this Agreement includes only the right to select sites for the establishment of Franchised Businesses and to submit the same to us for our approval in accordance with the terms of this Agreement. This Agreement does not include the grant of a license by us to you of any rights to use the Marks, the System, or to open or operate any Franchised Businesses within the Development Area. You shall obtain the license to use such additional rights at each Franchised Business upon the execution of each Franchise Agreement by both you and us and only in accordance with the terms of each Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Development Agreement does not automatically grant a license to use the Crave Marks or System. The Development Agreement primarily grants the developer the right to select sites for potential Franchised Businesses, subject to Crave's approval.
The right to use the Crave Marks and System is only granted upon the execution of a Franchise Agreement for each specific Franchised Business. This means that a developer must enter into a separate Franchise Agreement for each location they intend to open within their Development Area to gain the rights to operate under the Crave brand.
This distinction is important for prospective Crave developers because it clarifies that the Development Agreement is focused on securing the rights to develop within a specific area, while the Franchise Agreement governs the actual operation of each Crave business. Developers should be aware that fulfilling the obligations under the Development Agreement, such as meeting the Minimum Performance Schedule, is crucial for maintaining their exclusive development rights within the designated area.