Does the Crave Franchise Agreement grant the franchisee the right to operate the Franchised Business from any location other than the Accepted Location?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
akings and commitments set forth herein, the receipt and sufficiency of which are hereby acknowledged, agree as follows:
ARTICLE 1 GRANT
1.1 Grant of Franchise
In reliance on the representations and warranties of you and your Principals hereunder, we hereby grant to you, upon the terms and conditions in this Agreement, the right and license, and you hereby accept the right and obligation, to operate a Crave business under the Marks and the System in accordance with this Agreement. You and the Principals have represented to us that you have entered into this Agreement with the intention to comply fully with the obligations to construct the Franchised Business hereunder and not for the purpose of reselling the rights to develop the Franchised Business. You and the Principals understand and acknowledge that we have granted such rights in reliance on the business skill, financial capacity, personal character of, and expectations of performance hereunder by, you and the Principals and that this Agreement and the rights and obligations hereunder may not be transferred until after the Franchised Business is open for business to the public in accordance with Section 2.7, and then only in accordance with Article 14 hereof.
1.2 Accepted Location
The specific street address of the Franchised Business location as approved by us shall be set forth in Attachment 1 ("Accepted Location") when such Accepted Location is determined. You shall not relocate the Franchised Business without our express prior written consent, which consent shall not be unreasonably withheld. This Agreement does not grant to you the right or license to operate the Franchised Business or to offer or sell any products or services described under this Agreement at or from any location other than the Accepted Location.
1.3 Relocation
If you are unable to continue the operation of the Franchised Business at the Accepted Location 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 Franchised Business to another location in the Designated Territory, as that term is defined below, which approval shall not be unreasonably withheld. Any other relocation outside the Designated Territory or a relocation of the Franchised Business not caused by force majeure shall also be subject to our prior approval. If we elect to grant you the right to relocate the Franchised Business, then you shall comply with the site selection and construction proceduresset forth in Article 2. When you submit to us your relocation request,
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Franchise Agreement strictly limits the franchisee to operating solely from the Accepted Location. Section 1.2 of the agreement explicitly states that the franchise does not grant any right to operate the Franchised Business from any location other than the Accepted Location. This means a franchisee cannot conduct business or sell products/services from any other site without express written consent from Crave.
However, the FDD also outlines a specific scenario where relocation might be permissible. If a force majeure event (defined in Section 17.1.3(e) of the Franchise Agreement) makes it impossible to continue operating at the Accepted Location, a franchisee can request approval to relocate within their Designated Territory. This relocation is subject to Crave's approval, which will not be unreasonably withheld. Any relocation outside the Designated Territory or not caused by a force majeure event requires Crave's prior approval.
Should Crave approve a relocation, the franchisee must adhere to the site selection and construction procedures outlined in Article 2 of the Franchise Agreement. Additionally, the franchisee is responsible for paying a non-refundable relocation fee of $5,000. Upon approval, Crave will issue a revised Attachment 1 to reflect the new Accepted Location. This clause ensures that Crave maintains control over where its franchises operate, while providing a mechanism for relocation under specific, unavoidable circumstances.