factual

Does a Crave franchisee have options or rights of first refusal to acquire additional franchises?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

You have no options, rights of first refusal, or similar rights to acquire additional franchises.

After the final Franchised Business under your Minimum Performance Schedule has opened, if we believe that it is desirable to establish additional Franchised Businesses within the Development Area, and if you complied with the terms of your Multi-Unit Development Agreement and are in compliance with your Franchise Agreements, we will offer you the right to develop these additional Franchised Businesses. You must exercise this option, in full, within 60 days of our notice to you. If you do not exercise or you decline this right of first refusal, we will have the right to sell these development rights to another multiunit developer or to develop the Restaurants or Food Trucks ourselves.

Source: Item 12 — TERRITORY (FDD pages 42–46)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, franchisees generally do not have options or rights of first refusal to acquire additional franchises. Item 12 of the Franchise Agreement states that franchisees have no options, rights of first refusal, or similar rights to acquire additional franchises. This means that Crave is not obligated to offer existing franchisees the first opportunity to open new locations.

However, the FDD indicates that multi-unit developers may have a right of first refusal under certain conditions. Specifically, after the final Franchised Business under the Minimum Performance Schedule has opened, Crave may offer the franchisee the right to develop additional Franchised Businesses within the Development Area, provided the franchisee has complied with the terms of the Multi-Unit Development Agreement and is in compliance with their Franchise Agreements. The franchisee must exercise this option within 60 days of notice from Crave. If the franchisee declines or does not exercise this right, Crave can sell these development rights to another multiunit developer or develop the Restaurants or Food Trucks themselves.

It's important to note that this right of first refusal for multi-unit developers is subject to specific conditions and is not guaranteed. Additionally, Crave retains significant rights to operate or franchise others to operate Crave Restaurants or Food Trucks at Non-Traditional Sites, such as gas stations, transportation facilities, and military bases, even within a franchisee's Designated Territory or Development Area. These Non-Traditional Sites are generally excluded from the franchisee's territorial rights.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.