factual

What factors does Crave consider when designating a Development Area?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

Multi-Unit Development Agreement: Under the Multi-Unit Development Agreement we grant you the right to develop and operate (under separate Franchise Agreements) the number of Crave Restaurants or Food Trucks in the Development Area that is specified in the Minimum Performance Schedule, which is an attachment to the Multi-Unit Development Agreement. The Development Area is typically described in terms of municipal or county boundaries but may be defined as a specified trade area in a municipality. The actual size of the Development Area will vary depending upon the availability of

contiguous markets, our long-range development plans, your financial and operational resources, the number and mix of Restaurants and Food Trucks you commit to develop, population, and market conditions. Our designation of a particular Development Area is not an assurance or warranty that there are enough suitable sites for Restaurants or suitable municipalities for Food Trucks in the Development Area for you to meet your Minimum Performance Schedule. The responsibility to locate and prepare enough suitable sites/municipalities is solely yours and we have no obligation to approve sites or municipalities which do not meet our criteria for you to meet the Minimum Performance Schedule.

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 is typically defined by municipal or county boundaries but can also be a specified trade area within a municipality. The actual size of a Development Area varies based on several factors. These include the availability of contiguous markets, Crave's long-range development plans, and the franchisee's financial and operational resources.

Crave also considers the number and mix of Restaurants and Food Trucks the franchisee commits to developing within the area. Population and overall market conditions also play a role in determining the size and scope of the Development Area. However, Crave states that designating a particular Development Area does not guarantee enough suitable sites for Restaurants or municipalities for Food Trucks to meet the Minimum Performance Schedule.

Ultimately, the franchisee bears the responsibility for finding and preparing enough suitable locations or municipalities, and Crave has no obligation to approve sites or municipalities that do not meet their criteria. This means that while Crave considers various factors when designating a Development Area, the franchisee's ability to meet the development schedule depends on their own site selection and preparation efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.