What does the Crave Franchise Agreement say about relocation?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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, you shall pay to us a non-refundable relocation fee in an amount equal to Five Thousand Dollars ($5,000). We shall issue a revised Attachment 1, in accordance with Section 1.2, to reflect the new address of the Accepted Location.
1.4 Designated Territory
Upon the execution of this Agreement or when the Accepted Location is determined, whichever occurs later, you may be assigned a territory (the "Designated Territory") that will also be described in Attachment 1. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Franchise Agreement addresses relocation under specific circumstances. If a force majeure event (defined in Section 17.1.3(e) of the agreement) makes it impossible to continue operating at the approved location, a franchisee can request approval to relocate within their designated territory. Crave's approval for such a relocation cannot be unreasonably withheld. Any other relocation outside the designated territory, or a relocation not due to a force majeure event, requires Crave's prior approval.
If Crave grants the right to relocate, the franchisee must adhere to the site selection and construction procedures outlined in Article 2 of the Franchise Agreement. A non-refundable relocation fee of $5,000 is required when submitting the relocation request. Upon approval, Crave will issue a revised Attachment 1 to reflect the new location's address.
The FDD also states that these relocation terms are modified for food truck franchises. Section 1.3 of the Franchise Agreement is deleted in its entirety and replaced with a section that states if a force majeure event occurs, the franchisee may request 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 Crave's prior approval. If Crave elects to grant the right to relocate, redefine or alter the Designated Territory, then the franchisee shall comply with the site selection procedures set forth in Section 2.2. When the franchisee submits a relocation request, they must pay a non-refundable relocation fee of $5,000.
Prospective franchisees should carefully consider these relocation terms, understanding the conditions under which relocation is permitted, the associated costs, and the importance of adhering to Crave's procedures. It is also important to note the differences in relocation terms for a standard franchise versus a food truck franchise.