After the Crave franchise agreement terminates or expires, can Crave operate or franchise others to operate Crave businesses inside the Designated Territory?

According to Crave's 2025 Franchise Disclosure Document, after the franchise agreement terminates or expires, Crave and its affiliates have the right to develop and operate Crave outlets, and to grant others the rights and franchises to develop and operate Crave outlets within the Development Area. This is subject to any territorial rights granted to the franchisee regarding Franchised Businesses they operate under the Franchise Agreements. It is also subject to the right of first refusal as described in Section 6 of the franchise agreement.

This means that upon the end of the agreement, Crave is not restricted from opening its own stores or franchising others within the former franchisee's territory. The former franchisee's territorial rights cease to exist, except for any existing Franchised Businesses still operated by the franchisee under separate agreements.

This clause is important for prospective franchisees to understand, as it highlights that the territorial protection offered during the term of the agreement does not extend beyond the agreement's termination or expiration. Crave retains the right to compete directly or through other franchisees in the same area once the agreement concludes, which could impact the potential for future business growth or resale value.