Does the Crave franchise agreement grant franchisees any ownership or equitable rights in the Marks?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "CRAVE Franchising, LLC" as Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave FDD, franchisees do not acquire ownership or equitable rights to the Marks. Crave retains all rights to the Marks, as the franchise agreement only grants franchisees the right to use the Marks in accordance with the agreement's terms.
Specifically, Crave retains the right to use the Marks outside the franchisee's development area and through alternative distribution channels. This means Crave can sell products with the Marks through the internet, grocery stores, or other channels, even within the franchisee's territory. Crave also retains the right to operate or franchise Crave outlets outside the development area under any terms they deem appropriate.
Furthermore, the FDD states that Crave may sell its assets, including rights to the Marks, to a third party. The franchisee expressly waives any claims or damages related to the loss of the Marks or association with "CRAVE Franchising, LLC" in such a sale. This underscores that franchisees do not gain any ownership or equitable rights in the Marks and are subject to Crave's decisions regarding the Marks' use and transfer.