Is a Crave franchisee allowed to use alternative distribution channels to make sales outside or inside their Designated Territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates may sell products under the Marks within and outside your Designated Territory through any method of distribution other than a Crave Restaurant or Food Truck, including sales through channels of distribution such as the internet, catalog sales, grocery stores, club stores, specialty food stores, telemarketing or other direct marketing sales (together, "alternative distribution channels"). You may not use alternative distribution channels to make sales outside or inside your Designated Territory and you will not receive any compensation for our sales through alternative distribution channels.
We or our affiliate will fulfill all orders placed through the retail portion of our website and you will not be entitled to any portion of the profits received from this, even if the customer's order is generated from or delivered to an address in your Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using alternative distribution channels to make sales, whether inside or outside their designated territory. The FDD defines "alternative distribution channels" as methods other than a Crave Restaurant or Food Truck, including internet sales, catalog sales, grocery stores, club stores, specialty food stores, telemarketing, or other direct marketing sales. This restriction is in place to ensure that Crave maintains control over these channels and to prevent franchisees from competing with the franchisor's own efforts in these areas.
Crave and its affiliates retain the right to sell products under the brand's trademarks within and outside a franchisee's designated territory through any method of distribution other than a Crave Restaurant or Food Truck. This includes sales through the internet, catalogs, grocery stores, and other channels. Franchisees will not receive any compensation for sales made through these alternative distribution channels, even if the sales occur within their designated territory. Crave will fulfill all orders placed through the retail portion of its website, and franchisees are not entitled to any portion of the profits, regardless of whether the customer's order originates from or is delivered to an address within their designated territory.
This policy has significant implications for prospective Crave franchisees. It means that franchisees must rely solely on their physical restaurant or food truck location to generate revenue and cannot supplement their income through online sales or other alternative channels. This limitation could impact a franchisee's potential earnings, especially in areas where online ordering and delivery are popular. Franchisees should carefully consider this restriction and its potential impact on their business before investing in a Crave franchise.