factual

Does the Crave Franchise Agreement grant a franchise?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

WHEREAS, Franchisor and Franchisee are parties to a franchise agreement executed on or about the Effective Date hereof (the "Franchise Agreement"), whereby Franchisor has granted Franchisee the right to use certain trademarks, including, the registered trademark "CRAVE Hot Dogs Barbecue" and design mark, and certain proprietary products, services, promotions and methods (the "System") to establish and operate a Crave restaurant (the "Restaurant") pursuant to the System**;**

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, the Franchise Agreement does grant a franchise. Several excerpts from the FDD confirm this. Specifically, the document states that the franchisor and franchisee are parties to a franchise agreement where the franchisor grants the franchisee the right to use trademarks and the Crave system to operate a restaurant. This agreement allows the franchisee to establish and operate a Crave restaurant using the brand's trademarks and proprietary methods.

Furthermore, the FDD includes addenda and amendments to the Franchise Agreement, indicating that the agreement itself is the foundation upon which the franchise relationship is built. For example, there are references to operating a Crave franchise from a food truck, which requires amending certain sections of the original Franchise Agreement. These amendments and addenda would be unnecessary if the Franchise Agreement did not initially grant the rights to operate a Crave franchise.

The FDD also mentions the franchisee's obligations upon termination of the Franchise Agreement, such as transferring interests in websites, social media accounts, and telephone listings back to Crave. This further emphasizes that the Franchise Agreement grants the franchisee the rights to use these assets during the term of the agreement, which is a key aspect of the franchise being granted.

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.