Which document outlines the territorial development and sales quotas for a Crave franchise, and which section specifically?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Provided you are in full compliance with all the terms and conditions of this Agreement, including without limitation your development obligations described in Section 3.2 and the Minimum Performance Schedule, and you are in full compliance with all of your obligations under all franchise agreements executed pursuant to this Agreement, then during the term of this Agreement neither we nor any of our affiliates will develop or operate or grant franchises for the development or operation of Franchised Businesses within the Development Area, except the franchises that are granted to you pursuant to this Agreement and except as otherwise expressly provided in this Agreement.
- 4.3 Upon the termination or expiration of this Agreement, we and our affiliates shall have the right to develop and operate, and to grant to others development rights and franchises to develop and operate, dedicated Crave outlets within the Development Area subject only to the territorial rights granted to you with respect to Franchised Businesses operated by you pursuant to the Franchise Agreements and subject, further, to the right of first refusal described in Section 6 below.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 30–31)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement outlines the territorial development, and Section 3.2 describes the development obligations. Item 23 refers to Section 3.2 of the agreement, stating that franchisees must be in full compliance with their development obligations and the Minimum Performance Schedule to maintain their territorial rights.
Specifically, the Multi-Unit Development Agreement, as detailed in Item 1, grants the right to develop multiple Crave Restaurants or Food Trucks within a defined geographic area. This agreement includes a minimum performance schedule that requires franchisees to establish at least three Franchised Businesses within the Development Area. The size of the Development Area is determined by Crave based on local market conditions and the number of Franchised Businesses to be developed.
Item 23 also mentions that if a franchisee meets the conditions of the agreement, Crave will not develop or operate other franchises within the Development Area. However, upon termination or expiration of the agreement, Crave reserves the right to develop and grant franchises to others within the area, subject to any territorial rights granted to the franchisee and a right of first refusal.