Does the Crave Development Agreement give the franchisee the right to franchise others?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
7.2 The Development Rights granted hereunder are personal to you and cannot be sold, assigned, transferred or encumbered, in whole or in part, except as stated in Section 11 hereof.
7.3 Except as provided in Section 6 hereof, the Development Rights granted hereunder are non-exclusive, and we retain the right, in our sole discretion:
7.3.1 To continue to construct and operate other dedicated Crave outlets and to use the System and the Marks at any location outside the Development Area, and to license others to do so.
7.3.2 To develop, use and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignia, or copyrights not designated by us as Marks for use with different franchise systems for the sale of the different products or services not in connection with the System at any location, on such terms and conditions as we may deem advisable and without granting you any rights therein.
7.3.3 To develop, merchandise, sell and license others to sell any of our products, proprietary or otherwise, presently existing or to be developed in the future, to the public through alternative distribution channels outside or inside of the Development Area and to use the Marks in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Crave Development Agreement does not grant franchisees the right to sub-franchise. The agreement allows franchisees to select sites for Crave businesses within a specific development area, subject to Crave's approval. However, the right to use Crave's marks and system is only granted upon the execution of individual Franchise Agreements for each location.
Crave retains the right to operate or franchise others outside the franchisee's development area. Additionally, Crave can develop and franchise different systems using trademarks not designated as Crave's marks. This ensures Crave maintains control over its brand and expansion strategies, while the franchisee focuses on developing locations within their designated area.
The Development Rights granted to the franchisee are personal and cannot be transferred or assigned, except as explicitly stated in the agreement. This restriction prevents franchisees from selling their development rights to third parties without Crave's consent, ensuring that new developers meet Crave's standards. Crave also retains the right to sell its products through alternative distribution channels, both inside and outside the development area, without granting the franchisee any rights in those channels. This allows Crave to diversify its revenue streams and reach customers through various avenues, such as online sales or partnerships with other retailers.