factual

Is a Crave franchisee allowed to sub-franchise their Development Rights?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 7.8 You shall at no time have the right to sub-franchise any of your Development Rights hereunder.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from sub-franchising their development rights. This restriction means that a franchisee who obtains the right to develop multiple Crave locations within a specific area cannot transfer or delegate those development rights to another party.

This limitation is a significant factor for potential Crave franchisees considering multi-unit development. It ensures that Crave maintains control over the expansion of its brand and the selection of operators. Franchisees must be prepared to personally manage or directly oversee the development of all locations within their designated area, as they cannot rely on third parties to fulfill these obligations.

The FDD clearly states this restriction to avoid any ambiguity and to ensure that franchisees understand their responsibilities and limitations regarding development rights. This policy is not uncommon in franchising, as franchisors often want to maintain tight control over brand standards and operational consistency.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.