Does a Crave franchisee's Development Area automatically include the right to develop Restaurants or operate Food Trucks at Non-Traditional Sites?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
conditions of the Multi-Unit Development Agreement and all of the Franchise Agreements signed under it. Your territorial rights to the Development Area may or may not, in our discretion, include the right to develop Restaurants or operate Food Trucks at any Non-Traditional Sites. Because we have the right to develop Restaurants or operate Food Trucks at Non-Traditional Sites, as described above, your Development Area is not exclusive to you.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee's Development Area under a Multi-Unit Development Agreement does not automatically include the right to develop Restaurants or operate Food Trucks at Non-Traditional Sites. The FDD specifies that Crave retains the right to develop Restaurants or operate Food Trucks at Non-Traditional Sites, meaning the Development Area granted to a franchisee is not exclusive in this regard.
If a Non-Traditional Site becomes available within the Development Area, Crave may, at its sole discretion, offer the franchisee the opportunity to develop a Restaurant or Food Truck at that site. The franchisee then has 30 days to accept this right of first refusal. This indicates that while franchisees don't automatically have rights to Non-Traditional Sites, they may be given the first opportunity to develop them if Crave chooses to do so.
This policy has significant implications for prospective Crave franchisees. It means that Crave can operate or franchise others to operate at Non-Traditional Sites within a franchisee's Development Area, potentially creating competition. Franchisees should carefully consider this when evaluating the potential of a Development Area and discuss with Crave the likelihood of Non-Traditional Sites being developed within their territory. Understanding Crave's strategy for Non-Traditional Sites is crucial for assessing the true value and exclusivity of the Development Area.