What is the distance restriction from any Crave Franchised Business operating under the System and the Proprietary Marks?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
are prohibited from serving and soliciting customers outside of the Designated Territory and from using alternative methods of distribution as more fully specified herein.
1.5 Our Reserved Rights
- 1.5.1 Nothing in this Agreement will prohibit us from: (a) operating and/or franchising others to operate restaurants or other distribution models identified in whole or in part by the Proprietary Marks and/or utilizing the System in the Designated Territory that are located in gas stations or convenience stores; transportation facilities, including airports, train stations, subways and rail and bus stations; military bases and government offices; sports facilities, including stadiums and arenas; amusement parks, zoos and convention centers; car and truck rest stops and travel centers; educational facilities; recreational theme parks; hospitals; business or industrial foodservice venues; venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider; Indian reservations; casinos; or any similar captive market location not reasonably available to you ("Non-Traditional Site"); (b) awarding national, regional or local licenses to third parties to sell products under the Proprietary Marks in foodservice facilities primarily identified by the third party's trademark; (c) merchandising and distributing products identified by the Proprietary Marks in the Designated Territory through any method or channel of distribution other than through the operation of a dedicated restaurant, including distribution of proprietary products through grocery stores, club stores and similar stores; (d) selling and distributing products identified by the Proprietary Marks in the Designated Territory to restaurants or distribution channels other than a dedicated restaurant identified by the Proprietary Marks, provided those restaurants or distribution channels are not licensed to use the Proprietary Marks in connection with their retail sales; (e) selling products and services through other channels of distribution, including the internet, wholesale, mail order and catalogue; (f) developing and/or owning other franchise systems for the same or similar products and services using trade names and trademarks other than the Proprietary Marks; and (g) purchasing, being purchased by, merging or combining with, businesses that we deem to offer direct competition to Crave businesses.
- 1.5.2 You understand and acknowledge that if any Non-Traditional Site (as described above) is located within the physical boundaries of your Designated Territory, then the premises of this Non-Traditional Site will not be included in your Designated Territory and you will have no rights to this Non-Traditional Site.
- 1.5.3 This Section 1.5 does not prohibit us or our affiliates from: (a) operating and franchising others to operate, during the Initial Term, Crave businesses at any location outside of the Designated Territory; (b) operating and franchising others to operate, after this Agreement terminates or expires, Crave businesses at any location, including locations inside the Designated Territory; and (c) operating and franchising others to operate at any location, during or after the Initial Term, any type of restaurant or distribution model other than a dedicated Crave Restaurant.
- 1.5.4 The restrictions contained in this Section do not apply to Crave businesses in operation, under lease or construction or other commitment to open in the Designated Territory as of the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisor retains significant rights regarding the operation and franchising of Crave businesses, which may impact a franchisee's territory. Specifically, Crave maintains the right to operate or franchise others to operate restaurants or other distribution models identified by the Proprietary Marks within the franchisee's Designated Territory if these are located in Non-Traditional Sites. These Non-Traditional Sites include locations such as gas stations, convenience stores, transportation facilities, military bases, sports facilities, amusement parks, educational facilities, hospitals, and casinos.
Furthermore, Crave reserves the right to award licenses to third parties to sell products under the Proprietary Marks in foodservice facilities primarily identified by the third party's trademark. They can also merchandise and distribute products identified by the Proprietary Marks through various channels, such as grocery stores and club stores, other than through a dedicated restaurant. Additionally, Crave can sell and distribute products identified by the Proprietary Marks to restaurants or distribution channels not licensed to use the Proprietary Marks in connection with their retail sales.
Crave also retains the right to operate dedicated Crave outlets outside the Development Area under any terms and conditions they deem appropriate, regardless of proximity to a Franchised Business. They can operate or franchise others to operate Crave businesses at any location after the franchise agreement terminates or expires, including locations inside the Designated Territory. Moreover, Crave has the right to conduct any business activities under any name, in any geographic area, and at any location, irrespective of the proximity to the Franchised Business or the economic effect on the franchisee's business.
These reserved rights and activities could potentially impact the market and revenue of a franchisee's Crave business, as Crave retains considerable latitude in establishing additional outlets and distribution channels, even within or near a franchisee's territory. A prospective franchisee should carefully consider these factors and how they might affect the potential success and profitability of their Crave franchise.