What is the franchisee granted in consideration of the Crave Development Fee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Provided you are in full compliance with all the terms and conditions of this Agreement, including without limitation your development obligations described in Section 3.2 and the Minimum Performance Schedule, and you are in full compliance with all of your obligations under all franchise agreements executed pursuant to this Agreement, then during the term of this Agreement neither we nor any of our affiliates will develop or operate or grant franchises for the development or operation of Franchised Businesses within the Development Area, except the franchises that are granted to you pursuant to this Agreement and except as otherwise expressly provided in this Agreement.
- 4.3 Upon the termination or expiration of this Agreement, we and our affiliates shall have the right to develop and operate, and to grant to others development rights and franchises to develop and operate, dedicated Crave outlets within the Development Area subject only to the territorial rights granted to you with respect to Franchised Businesses operated by you pursuant to the Franchise Agreements and subject, further, to the right of first refusal described in Section 6 below.
- 4.4 We and our affiliates retain all rights not expressly granted to you with respect to Crave outlets, the Marks and the sale of any goods and services, anywhere in the world, including, without limitation, the right:
- 4.4.1 to produce, offer and sell and to grant others the right to produce, offer and sell the products offered at dedicated Crave outlets and any other goods displaying the Marks or other trade and service marks through alternative distribution channels, as described below, both within and outside the Development Area, and under any terms and conditions we deem appropriate. "Alternative distribution channels" include, but are not limited to, the internet, catalog sales, grocery stores, club stores, specialty food stores, telemarketing or other direct marketing sales;
- 4.4.2 to operate and to grant others the right to operate dedicated Crave outlets located outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to a Franchised Business;
- 4.4.3 to operate and to grant others the right to operate dedicated Crave outlets at Non-Traditional Sites within and outside the Development Area under any terms and conditions we deem appropriate, subject to the right of first refusal described in Section 6.2; and
- 4.4.4 to acquire and operate a business operating one or more restaurants or food service businesses located or operating in the Development Area, except that these businesses will not operate using the Proprietary Marks.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, a franchisee who is in full compliance with the terms and conditions of the agreement, including development obligations and the Minimum Performance Schedule, gains certain territorial protections. Specifically, Crave and its affiliates agree not to develop, operate, or grant franchises to others within the Development Area during the term of the agreement. This exclusivity is limited to dedicated Crave outlets and is subject to the franchises granted to the franchisee under the agreement, as well as other express provisions outlined in the agreement.
However, these territorial rights are not indefinite. Upon termination or expiration of the agreement, Crave and its affiliates regain the right to develop and operate, and to grant others the rights to develop and operate, Crave outlets within the Development Area. This is subject to the franchisee's existing territorial rights for their operated Franchised Businesses and a right of first refusal as described in Section 6 of the agreement.
Crave retains all rights not expressly granted to the franchisee. This includes the right to produce, offer, and sell products offered at Crave outlets through alternative distribution channels (like the internet, grocery stores, etc.) both within and outside the Development Area. Crave also retains the right to operate or franchise Crave outlets outside the Development Area, regardless of their proximity to the franchisee's business, and to operate or franchise Crave outlets at Non-Traditional Sites within and outside the Development Area, subject to a right of first refusal. Crave can also acquire and operate other restaurant or food service businesses in the Development Area, as long as they do not use Crave's Proprietary Marks.