After the Franchise Agreement terminates, can Crave operate or franchise Crave Restaurants or Food Trucks inside a former franchisee's Designated Territory?

According to Crave's 2025 Franchise Disclosure Document, Crave has the right to operate or franchise others to operate Crave Restaurants or Food Trucks at any location, including locations inside a former franchisee's Designated Territory, after the Franchise Agreement terminates or expires. This means that upon termination or expiration of the agreement, a franchisee could face direct competition from Crave or another Crave franchisee within their previous territory.

This clause has significant implications for prospective franchisees. While franchisees are granted a Designated Territory during the term of their agreement, this protection ceases once the agreement ends. Crave retains the right to establish new franchises or operate company-owned restaurants within that same territory. This could impact the resale value of the franchise or the franchisee's ability to continue operating a similar business in the same area after the agreement concludes.

It is important to note that this condition applies specifically after the termination or expiration of the Franchise Agreement. During the term of the agreement, Crave is restricted from establishing or operating, or licensing others to operate, a Restaurant or Food Truck in the Designated Territory, with certain exceptions such as Non-Traditional Sites. This post-term provision is a standard practice in franchising, allowing franchisors flexibility in expanding their brand presence over time.

Prospective franchisees should carefully consider this clause and its potential impact on their long-term business plans. Understanding the conditions under which Crave can operate within a former territory is crucial for making an informed investment decision. Franchisees should discuss this with Crave to understand their development plans and potential future competition in their area.