What does the Crave Food Truck Addendum state regarding the operation of the Franchised Business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
te") by and between CRAVE Franchising, LLC, a Wyoming limited liability | | | | company, with its principal address at 159 N. Wolcott St. Suite 133, | Casper, WY 82601 | ("Franchisor", | | "we", "our", or "us") and | | , a(n) | | | | , with its principal place of business located at | | | | and | 's principals | , an individual residing at | | | | , | , an individual residing at | | | | and | | | | | | ("Principal(s)"). | and | | | | Principal(s) shall be collectively referred to in this Addendum as "Franchisee", "you", or "your". | |
RECITALS
WHEREAS, Franchisor and Franchisee are parties to a franchise agreement of even date herewith which grants Franchisee the rights to establish a Crave® franchise in accordance with said agreement (the "Franchise Agreement");
WHEREAS, Franchisee elects, with Franchisor's consent, to operate Franchisee's Franchised Business at and from a food truck ("Food Truck"); and
WHEREAS, Franchisor and Franchisee desire to amend the Franchise Agreement as set forth herein.
NOW, THEREFORE, in consideration of the mutual promises contained in the Franchise Agreement and this Addendum, and for good and valuable considerations in hand paid by each of the parties to the others, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
- Sections 1.2 (Accepted Location) and 1.4 (Designated Territory) of the Franchise Agreement are hereby amended to state there shall be no Accepted Location for the Franchised Business. Section 1.4 (Designated Territory) is further amended by deleting the first paragraph thereof and replacing it with the following:
"Upon the execution of this Agreement, you shall be assigned a territory (the "Designated Territory") that will also be described in Exhibit A of the Addendum. You understand and acknowledge that if your Designated Territory includes a Non-Traditional Site (as described in Section 1.5 of the Franchise Agreement), the Non-Traditional Site is not a part of your Designated Territory and you shall have no right to operate the Food Truck at any Non-Traditional Site without our prior written permission."
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- Section 1.3 (Relocation) of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
- "1.3 Relocation. If you are unable to continue the operation of the Food Truck in the Designated Territory, as that term is defined below, because of the occurrence of a force majeure event (as described in Section 17.1.3(e)), then you may request our approval to relocate the operations of the Food Truck to another Designated Territory, which approval shall not be unreasonably withheld. Any other relocation, redefinition or change of the Designated Territory not caused by force majeure shall also be subject to our prior approval. If we elect to grant you the right to relocate, redefine
or alter the Designated Territory, then you shall comply with the site selection procedures set forth in Section 2.2. When you submit to us your relocation request, you shall pay to us a non-refundable relocation fee in an amount equal to Five Thousand Dollars ($5,000)."
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- Section 2.2 of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
- "2.2 Site Selection. You must obtain our acceptance of the municipality in which your Food Truck will operate before you begin operations. Once the municipality for your Food Truck has been accepted by us, we shall designate your Designated Territory pursuant to Section 1.4.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Food Truck Addendum modifies the standard franchise agreement to accommodate the mobile nature of the food truck business. Specifically, the addendum states that there is no 'Accepted Location' for the franchised business, acknowledging that the truck will operate in various locations. The franchisee is assigned a 'Designated Territory,' but this territory excludes 'Non-Traditional Sites' unless prior written permission is obtained from Crave. This means a franchisee cannot just set up at any event or location without approval.
The addendum also outlines specific obligations for maintaining the food truck. The franchisee is responsible for keeping the truck in good working order, ensuring it's regularly serviced according to warranty and manufacturer guidelines, and providing Crave with maintenance and repair records upon request. The exterior of the food truck must be kept clean, professionally washed at least once a week, and promptly repaired for any scratches or dents. Franchisees must also file all required state registration and inspection reports for the food truck, submit the truck for annual vehicle inspection as required by state law, and pay all registration and inspection fees.
Furthermore, the addendum modifies certain financial obligations. The Brand Development Fee is waived entirely for food truck franchisees. The Grand Opening Marketing expenditure is reduced from $5,000 to $2,500. The continuing weekly royalty fee for a Crave food truck is set at eight percent (8%) of Gross Sales. Franchisees must also provide separate Royalty Reports and any other reports, including electronic reporting, specifically for the food truck. These modifications reflect the different operational and financial aspects of a food truck compared to a traditional brick-and-mortar Crave restaurant.
Finally, the addendum includes the food truck as part of the assets that Crave is entitled to purchase if they exercise their right to purchase the franchised business. It also amends the section on 'Independent Licensee' to replace 'Franchised Business premises' with 'Food Truck,' reinforcing the mobile nature of the business. These stipulations ensure that the franchise agreement is appropriately adapted for the unique characteristics of a Crave food truck operation.