factual

Does a Crave franchisee's sales volume affect the Development Area?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

The Development Area may not be altered unless we and you mutually agree to do so. It will not be affected by your sales volume.

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

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, a franchisee's sales volume does not affect the Development Area. The Development Area may not be altered unless Crave and the franchisee mutually agree to do so. The size of the Development Area depends on factors such as market conditions, the franchisee's resources, and Crave's development plans.

To maintain rights under the Multi-Unit Development Agreement, a franchisee must have the agreed-upon number of Franchised Businesses open and operating by the dates specified in the Minimum Performance Schedule. Failure to meet this schedule can result in a loss of territorial exclusivity or termination of the agreement. Once the last Franchised Business in the Development Area opens, the franchisee's rights under the Multi-Unit Development Agreement expire, and Crave can then operate or grant franchises to others within that area, subject to the franchisee's existing territorial rights and right of first refusal for additional Franchised Businesses.

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

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.