What is the franchisee granted in consideration of the Crave Development Rights?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that:
7.1 Except as otherwise provided herein, this Agreement includes only the right to select sites for the establishment of Franchised Businesses and to submit the same to us for our approval in accordance with the terms of this Agreement. This Agreement does not include the grant of a license by us to you of any rights to use the Marks, the System, or to open or operate any Franchised Businesses within the Development Area. You shall obtain the license to use such additional rights at each Franchised Business upon the execution of each Franchise Agreement by both you and us and only in accordance with the terms of each Franchise Agreement.
7.2 The Development Rights granted hereunder are personal to you and cannot be sold, assigned, transferred or encumbered, in whole or in part, except as stated in Section 11 hereof.
7.3 Except as provided in Section 6 hereof, the Development Rights granted hereunder are non-exclusive, and we retain the right, in our sole discretion:
7.3.1 To continue to construct and operate other dedicated Crave outlets and to use the System and the Marks at any location outside the Development Area, and to license others to do so.
7.3.2 To develop, use and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignia, or copyrights not designated by us as Marks for use with different franchise systems for the sale of the different products or services not in connection with the System at any location, on such terms and conditions as we may deem advisable and without granting you any rights therein.
7.3.3 To develop, merchandise, sell and license others to sell any of our products, proprietary or otherwise, presently existing or to be developed in the future, to the public through alternative distribution channels outside or inside of the Development Area and to use the Marks in connection therewith.
7.4 You have sole responsibility for the performance of all obligations arising out of the operation of your business pursuant to this Agreement, including, but not limited to, the payment when due of any and all taxes levied or assessed by reason of such operation.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Development Rights granted to a franchisee include only the right to select sites for Franchised Businesses and submit them for approval, as stated in Section 7.1. The agreement does not automatically grant a license to use Crave's trademarks or system, or to operate any Franchised Businesses within the Development Area. The franchisee only obtains these additional rights upon the execution of each individual Franchise Agreement.
Section 7.2 clarifies that these Development Rights are personal to the franchisee and cannot be sold, assigned, transferred, or encumbered, except as outlined in Section 11 of the agreement. Furthermore, Section 7.3 specifies that the Development Rights are non-exclusive, meaning Crave retains the right to construct and operate other dedicated Crave outlets and to use the System and Marks outside the Development Area. Crave also reserves the right to develop and franchise other trade names, trademarks, or service marks not designated as Marks for different franchise systems.
Additionally, Crave retains the right to develop, merchandise, sell, and license others to sell any of its products through alternative distribution channels, both inside and outside the Development Area, and to use the Marks in connection with these activities. Section 7.4 emphasizes that the franchisee is solely responsible for all obligations arising from the operation of their business, including the payment of all applicable taxes. These conditions highlight that while the Development Rights provide an opportunity for expansion, they are subject to significant limitations and ongoing obligations.