What is the Crave franchisee's obligation to locate the Franchised Business in the Development Area?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
he acquisition of the Development Rights for such additional Franchised Businesses. You must notify us in writing within sixty (60) days of the receipt of such notice whether you wish to acquire the Development Rights to such additional Franchised Businesses. If you do not exercise this right of first refusal, in whole, we may, following the expiration of the sixty (60) day period, grant the Development Rights to such additional Franchised Businesses to any other person or persons on the same terms and conditions or we may elect to develop, construct and/or operate any of such additional Restaurants or Food Trucks.
SECTION 7 YOUR OBLIGATIONS
You acknowledge and agree that:
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee has the right to select sites for Franchised Businesses within the Development Area, but must submit these sites to Crave for approval. The Development Agreement does not automatically grant the franchisee the right to use Crave's Marks or System, or to operate any Franchised Businesses within the Development Area until a Franchise Agreement is executed by both parties. The franchisee's rights to use Crave's intellectual property are only granted upon the execution of each Franchise Agreement.
The Development Rights are personal to the franchisee and cannot be sold, assigned, transferred, or encumbered, except as specified in Section 11 of the agreement. Crave retains certain rights within the Development Area, including the right to construct and operate other Crave outlets and to use the System and Marks outside the Development Area, and to develop and franchise other trade names, trademarks, service marks, etc., not designated as Crave's Marks for different franchise systems. Crave also retains the right to sell its products through alternative distribution channels within or outside the Development Area.
The franchisee is solely responsible for all obligations arising from the operation of their business, including the payment of all taxes. Crave's approval of a site does not guarantee the success or profitability of the Franchised Business at that location. The franchisee may enter into the initial or subsequent Franchise Agreements using a newly formed entity, such as a limited liability company, corporation, or partnership, specifically for the purpose of entering into a Franchise Agreement and operating the Crave Franchised Business.