Does the Crave Franchise Agreement grant franchisees an exclusive license to use the Crave Marks?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The license to use the Marks granted in the Franchise Agreement is non-exclusive to you. We have and retain certain rights in the Marks including the following:
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- To grant other licenses for the use of the Marks in addition to those licenses already granted or to be granted to franchisees;
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- To develop and establish other systems using the Marks or other names or marks, and to grant licenses or franchises in those systems without providing any rights to you; and
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- To engage, directly or indirectly, at wholesale, retail or otherwise, in (a) the production, distribution, license and sale of products and services and (b) the use of the Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics we may develop for that purpose.
Source: Item 13 — TRADEMARKS (FDD pages 46–47)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the license to use Crave's trademarks is non-exclusive. This means that Crave retains the right to grant other licenses for the use of its marks to additional franchisees or other parties. Crave also has the right to develop and establish other systems using the same marks or other names and marks, and to grant licenses or franchises in those systems without providing any rights to the existing franchisees. Furthermore, Crave can engage directly or indirectly in the production, distribution, licensing, and sale of products and services using the marks.
For a prospective Crave franchisee, this non-exclusive license has several implications. It means that Crave could license its trademarks to other businesses, potentially including competitors, which could impact the franchisee's market and brand recognition. While Crave intends to defend its marks vigorously as a matter of corporate policy, the Franchise Agreement does not obligate them to protect the rights granted to the franchisee to use the marks or to protect the franchisee against claims of infringement or unfair competition.
Crave may also require the franchisee to discontinue or modify their use of any of the marks or to use substitute trade names, service marks, trademarks, symbols, logos, emblems, and indicia of origin if Crave determines that such a change will benefit the Crave system. This could involve additional expenses for the franchisee to update signage, marketing materials, and other branded items.
Overall, the non-exclusive nature of the trademark license means that a Crave franchisee has less control over the use of the Crave marks in their market area and is subject to Crave's decisions regarding the marks' use and protection. This is a fairly standard practice in franchising, as franchisors typically retain control over their trademarks to ensure consistent branding and quality across the system. However, prospective franchisees should carefully consider the potential impact of this non-exclusive license on their business.