What is the exception to Crave's right to acquire and operate existing restaurants or food service businesses within the Development Area?

According to Crave's 2025 Franchise Disclosure Document, Crave and its affiliates retain the right to acquire and operate businesses operating one or more restaurants or food service businesses within the Development Area. However, there is a specific exception: these acquired businesses cannot operate using Crave's Proprietary Marks.

This means that while Crave could purchase an existing restaurant within a franchisee's development area, they would be required to operate it under a different brand name and without using Crave's trademarks or branding. This clause protects the franchisee's exclusive rights to the Crave brand within their designated area while still allowing the franchisor to expand its overall business through acquisitions.

For a prospective Crave franchisee, this is an important consideration. It clarifies the extent of the territorial protection offered. While the franchisee has exclusive rights to operate Crave restaurants within their area, the franchisor can still own and operate other food service businesses, provided they are not branded as Crave. This could potentially lead to competition from businesses owned by the franchisor, although they would be operating under a different brand.