Can the Development Area for a Crave franchise be altered unilaterally?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Area may not be altered unless we and you mutually agree to do so. It will not be affected by your sales volume. You are not granted any other option, right of first refusal or similar right to acquire additional Franchised Businesses in your Development Area under the Multi-Unit Development Agreement, except as described above.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Development Area for a Multi-Unit Development Agreement cannot be altered unilaterally. The FDD specifies that any alteration to the Development Area requires mutual agreement between Crave and the franchisee. This protects the franchisee's defined territory from being changed without their consent. However, Crave retains significant rights within and around the Development Area.
Crave can still operate or franchise other Crave restaurants or food trucks at Non-Traditional Sites within the Development Area. Non-Traditional Sites include locations like gas stations, airports, military bases, and amusement parks. Additionally, Crave can sell products through alternative distribution channels such as the internet, grocery stores, and catalogs, even within the franchisee's Development Area, without compensating the franchisee.
Furthermore, if a franchisee fails to meet the Minimum Performance Schedule outlined in the Multi-Unit Development Agreement, Crave has the right to terminate the territorial exclusivity or even the entire agreement. After the last Franchised Business in the Development Area opens, Crave has the right to grant additional franchises or operate their own restaurants or food trucks in the area, subject to the franchisee's existing territorial rights and right of first refusal for additional Franchised Businesses. These conditions highlight the importance of meeting development obligations and understanding the scope of territorial protection offered by Crave.