Does Crave grant exclusive territories to franchisees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Except as expressly limited by the Multi-Unit Development Agreement, we and our affiliates retain all rights with respect to Restaurants, Food Trucks, the Marks, and any products and services anywhere in the world including the right: (a) to produce, offer and sell and to grant others the right to produce, offer and sell the products offered at Restaurants and any other goods displaying the Marks or other trade and service marks through alternative distribution channels, as described above, both within and outside your Development Area, and under any terms and conditions we deem appropriate; (b) to operate and to grant others the right to operate Restaurants or Food Trucks located outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to your Restaurants or Food Trucks; (c) to operate and to grant others the right to operate Restaurants or Food Trucks at Non-Traditional Sites within and outside the Development Area under any terms and conditions we deem appropriate; and (d) the right to acquire and operate a business operating one or more restaurants, food trucks or food service businesses located or operating in your Development Area, except that these businesses will not operate using the Proprietary Marks. If a Non-Traditional Site becomes available within the Development Area during the term of the Multi-Unit Development Agreement, we may, in our sole discretion, offer you the opportunity to develop a Restaurant or Food Truck at the Non-Traditional Site. You will have 30 days after we notify you that the site is available to accept this right of first refusal.
After the final Franchised Business under your Minimum Performance Schedule has opened, if we believe that it is desirable to establish additional Franchised Businesses within the Development Area, and if you complied with the terms of your Multi-Unit Development Agreement and are in compliance with your Franchise Agreements, we will offer you the right to develop these additional Franchised Businesses. You must exercise this option, in full, within 60 days of our notice to you. If you do not exercise or you decline this right of first refusal, we will have the right to sell these development rights to another multiunit developer or to develop the Restaurants or Food Trucks ourselves.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory under a standard Franchise Agreement. The FDD specifies that a franchisee "may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control." However, Crave may grant a multi-unit developer a Development Area, and, "Except as described below, during the term of the Multi-Unit Development Agreement, we and our affiliates will not operate or grant a franchise for the operation of Restaurants or Food Trucks to be located or to operate within the Development Area." This territorial protection can be terminated if the franchisee is not in compliance with the terms and conditions of the Multi-Unit Development Agreement and all of the Franchise Agreements signed under it.
For a standard franchise agreement, the franchisee's agreement will specify the "Accepted Location" for the Restaurant and a "Designated Territory" which is typically a five-mile radius around the Accepted Location. However, this Designated Territory is not exclusive because Crave retains the right to establish Restaurants at Non-Traditional Sites, or to operate Food Trucks at Non-Traditional Sites, even if they are within the franchisee's Designated Territory. If the Accepted Location is a Non-Traditional Site, the franchisee will not receive a Designated Territory.
Crave retains significant rights, regardless of any Designated Territory. Crave can operate or franchise others to operate Crave Restaurants or Food Trucks outside the Designated Territory, and after the Franchise Agreement terminates or expires, Crave can operate or franchise others to operate Crave Restaurants or Food Trucks at any location, including locations inside the Designated Territory. Crave also retains the right to conduct business activities under any name, in any geographic area, regardless of proximity to the franchisee's Restaurant or Food Truck. Additionally, Crave menu items may be offered and sold in all Bud's Place company-owned and franchised outlets, wherever they are located, according to a license agreement with Bud's Place Franchising, LLC. Bud's Place Franchising, LLC and Crave have agreed that neither of them will open a franchised Crave outlet or franchised Bud's Place outlet within five miles of each other.
These stipulations mean that a Crave franchisee's territory is subject to considerable limitations and potential competition from both the franchisor and other channels. Prospective franchisees should carefully consider these limitations and assess the potential impact on their business before investing in a Crave franchise.