What is the Crave franchisee's obligation to establish and operate Franchised Businesses under the Development Rights?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
7.5 In all public records, in your relationship with other persons, and in any documents, you shall indicate clearly the independent ownership of your business and that the operations of said business are separate and distinct from the operation of a Crave Franchised Business.
7.6 You shall at all times preserve in confidence any and all materials and information furnished or disclosed to you by us and you shall disclose such information or materials only to such of your employees or agents who must have access to it in connection with their employment.
You shall not at any time, without our prior written consent, copy, duplicate, record or otherwise reproduce such materials or information, in whole or in part, nor otherwise make the same available to any unauthorized person.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee with Development Rights has the right to select sites for Franchised Businesses, but this agreement alone does not grant the license to use Crave's Marks or System, or to operate any Franchised Businesses. To gain these rights, the franchisee must execute a Franchise Agreement for each Franchised Business.
The Development Rights are personal to the franchisee and cannot be transferred, except as specified in Section 11 of the agreement. Crave retains the right to construct and operate its own outlets, use the System and Marks outside the Development Area, and develop other franchise systems for different products or services. Crave also has the right to sell its products through alternative distribution channels, even within the Development Area.
The franchisee is solely responsible for all obligations arising from the operation of their business, including paying all applicable taxes. A Crave franchisee must clearly indicate the independent ownership of their business in all public records and relationships, ensuring it is distinct from Crave's operations. Furthermore, franchisees must keep confidential any materials and information provided by Crave, only sharing it with employees or agents who need access for their work and not reproducing or sharing it with unauthorized individuals without prior written consent.