factual

Does the Crave Development Agreement give the franchisee the right to sub-franchise?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 7.8 You shall at no time have the right to sub-franchise any of your Development Rights hereunder.

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 grant franchisees the right to sub-franchise their development rights. Specifically, the FDD states that franchisees "shall at no time have the right to sub-franchise any of your Development Rights hereunder."

This restriction means that a Crave franchisee with a Development Agreement cannot sell or transfer the right to open new Crave locations within their designated area to another party. The franchisee is solely responsible for fulfilling the development obligations outlined in their agreement with Crave. This is a fairly standard practice in franchising, as franchisors typically want to maintain control over who is granted the right to operate under their brand.

For a prospective Crave franchisee, this means they must be prepared to personally develop and operate all of the locations they commit to in the Development Agreement. They cannot rely on finding someone else to take over part of their development territory. This could impact their business plan and financial projections, as they need to ensure they have the resources and capabilities to meet the development schedule. It is important for potential franchisees to carefully consider their ability to meet these obligations before signing a Development Agreement with Crave.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.