What is the Crave franchisee granted the right to use solely in connection with the Development Rights?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
nated by us in writing) for use in connection with the System (hereinafter referred to as "Marks" or "Proprietary Marks");
WHEREAS, we and our affiliate continue to develop, use and control the use of such Marks in order to identify for the public the source of services and products marketed thereunder and under the System, and to represent the System's high standards of quality, appearance and service; and
WHEREAS, you wish to obtain certain development rights to open and operate Franchised Businesses operating under the Marks and the System within the Development Area described in this Agreement.
NOW, THEREFORE, the parties, in consideration of the undertakings and commitments of each party to the other party stated herein, hereby agree as follows:
SECTION 1 GRANT
1.1 We hereby grant to you, pursuant to the terms and conditions of this Agreement, certain development rights ("Development Rights") to establish and operate the number of Franchised Businesses granted in the Minimum Performance Schedule (defined below), and to use the Marks and System solely in connection therewith, at specific locations to be designated in separate Franchise Agreements executed as provided in Section 3.1 hereof, and pursuant to the schedule established in Attachment 1 of this Agreement (hereinafter "Minimum Performance Schedule"). Each Franchised Business developed
hereunder shall be located in the area described in Attachment 2 of this Agreement (hereinafter "Development Area"). The Minimum Performance Schedule shall be deemed completed, and this Agreement shall expire, upon the opening of the Franchised Business to be developed hereunder.
- 1.2 Each Franchised Business for which a Development Right is granted hereunder shall be established and operated pursuant to a Franchise Agreement to be entered into between you and us in accordance with Section 3.1 hereof.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee who is granted Development Rights has the right to establish and operate the number of Franchised Businesses granted in the Minimum Performance Schedule. They also have the right to use the Marks and System, but solely in connection with those businesses. These businesses must be at specific locations designated in separate Franchise Agreements. Each Franchised Business developed must be located in the Development Area as described in the agreement.
This means that the Development Rights do not automatically grant the franchisee the right to use Crave's Marks and System for any purpose other than developing the specified number of franchises within the designated area. The franchisee's rights are limited and tied to the specific locations and schedule outlined in the agreements.
It is important to note that this agreement is not a Franchise Agreement itself and does not grant any broad rights to use the Marks or System beyond the scope of the Development Rights. The franchisee also does not have the right to sub-franchise to others under the Marks or System. These limitations are significant for a prospective franchisee to understand, as they define the scope of their authorized activities and prevent them from expanding beyond the agreed-upon development plan without further agreements with Crave.