Is a Crave franchisee permitted to operate their Food Truck outside of their Designated Territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall not be permitted to operate your Food Truck outside the Designated Territory without our prior written consent.
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- Section 1.3 (Relocation) of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
- "1.3 Relocation. If you are unable to continue the operation of the Food Truck in the Designated Territory, as that term is defined below, because of the occurrence of a force majeure event (as described in Section 17.1.3(e)), then you may request our approval to relocate the operations of the Food Truck to another Designated Territory, which approval shall not be unreasonably withheld. Any other relocation, redefinition or change of the Designated Territory not caused by force majeure shall also be subject to our prior approval. If we elect to grant you the right to relocate, redefine
or alter the Designated Territory, then you shall comply with the site selection procedures set forth in Section 2.2. When you submit to us your relocation request, you shall pay to us a non-refundable relocation fee in an amount equal to Five Thousand Dollars ($5,000)."
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee is generally not permitted to operate their food truck outside of their designated territory without prior written consent from Crave. The FDD specifies that once Crave accepts the municipality for the food truck's operation, they will designate the territory.
However, there is an exception for relocation due to a force majeure event. If a franchisee is unable to continue operating the food truck in their designated territory due to such an event, they may request approval from Crave to relocate to another designated territory. This approval will not be unreasonably withheld. Any other relocation, redefinition, or change of the designated territory not caused by a force majeure event also requires Crave's prior approval.
If Crave grants the right to relocate, the franchisee must comply with the site selection procedures outlined in Section 2.2 of the agreement. Additionally, the franchisee must pay a non-refundable relocation fee of $5,000 when submitting the relocation request. This ensures that any changes to the operating location are subject to Crave's control and maintain brand consistency.