Does the Crave Development Agreement grant the right to use the Crave Marks or System?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
n sixty (60) days of the receipt of such notice whether you wish to acquire the Development Rights to such additional Franchised Businesses. If you do not exercise this right of first refusal, in whole, we may, following the expiration of the sixty (60) day period, grant the Development Rights to such additional Franchised Businesses to any other person or persons on the same terms and conditions or we may elect to develop, construct and/or operate any of such additional Restaurants or Food Trucks.
SECTION 7 YOUR OBLIGATIONS
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 wi
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 the right to use Crave's Marks or System. Instead, the Development Agreement solely grants the right to select sites for Franchised Businesses, which must then be submitted to Crave for approval. The license to use Crave's Marks and System is only obtained upon the execution of each Franchise Agreement.
This means that a prospective Crave franchisee who signs a Development Agreement is only securing the opportunity to develop franchise locations within a specific area. They are not yet authorized to operate a Crave franchise or use Crave's branding and operational system. The actual rights to operate a franchise come into effect only after a separate Franchise Agreement is signed for each specific location.
This two-step process is common in franchise systems that involve area development. It allows Crave to control the pace and quality of expansion, ensuring that each location meets their standards before granting full franchise rights. For the franchisee, it means that signing the Development Agreement is just the first step in a longer process of establishing and operating Crave franchises.