Can a Crave franchisee face competition from other franchisees, company-owned outlets, or other channels of distribution?

According to Crave's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory and may face competition from various sources. Specifically, a Crave franchisee may encounter competition from other franchisees, company-owned outlets, alternative distribution channels, and even competitive brands that Crave controls. This means that even within a franchisee's designated territory, Crave retains the right to operate or franchise others to operate restaurants or food trucks at non-traditional sites such as gas stations, airports, military bases, and amusement parks.

Crave and its affiliates also reserve the right to conduct business activities under any name and in any geographic area, regardless of proximity to a franchisee's restaurant or food truck, or the economic effect on the franchisee's business. Crave can sell products under its trademarks within and outside a franchisee's designated territory through various methods of distribution, including internet sales, catalog sales, grocery stores, and telemarketing. Franchisees will not receive compensation for Crave's sales through these alternative distribution channels, and they are not allowed to use these channels to make sales outside or inside their designated territory.

Furthermore, Crave retains the right to develop other franchise systems for similar products and services using different trade names and trademarks. They can also purchase, merge, or combine with businesses that they deem to offer direct competition to Crave businesses. These activities can occur without any obligation to provide consideration to the franchisee, even if they occur within the franchisee's designated territory. This extensive reservation of rights by Crave underscores the importance of carefully evaluating the market and potential competition before investing in a franchise.