What is the exception to Crave's obligation not to establish other outlets in the Development Area?

According to Crave's 2025 Franchise Disclosure Document, Crave and its affiliates are generally restricted from developing or operating, or granting franchises to others for operation of, franchised businesses within a franchisee's Development Area during the agreement term. However, this obligation is subject to certain exceptions.

Specifically, Crave is not prohibited from operating or franchising others to operate Crave businesses at any location outside of the Designated Territory during the initial term of the agreement. After the agreement terminates or expires, Crave can operate or franchise others to operate Crave businesses at any location, including those inside the Designated Territory. Additionally, Crave can operate or franchise others to operate any type of restaurant or distribution model other than a dedicated Crave Restaurant at any location, whether during or after the initial term.

These exceptions mean that while a franchisee may have some territorial protection for dedicated Crave outlets during the agreement, Crave retains significant flexibility to expand its brand through other means and in other locations, even within the franchisee's territory after the agreement ends. A prospective franchisee should carefully consider these exceptions and their potential impact on their business before investing in a Crave franchise.