Can Crave grant other licenses for the use of the Crave Marks in addition to those granted to franchisees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The license to use the Marks granted in the Franchise Agreement is non-exclusive to you. We have and retain certain rights in the Marks including the following:
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- To grant other licenses for the use of the Marks in addition to those licenses already granted or to be granted to franchisees;
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- To develop and establish other systems using the Marks or other names or marks, and to grant licenses or franchises in those systems without providing any rights to you; and
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- To engage, directly or indirectly, at wholesale, retail or otherwise, in (a) the production, distribution, license and sale of products and services and (b) the use of the Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics we may develop for that purpose.
Source: Item 13 — TRADEMARKS (FDD pages 46–47)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains the right to grant additional licenses for the use of its trademarks to entities other than its franchisees. This means that Crave is not restricted to only licensing its marks to franchisees and can authorize other parties to use them as well.
This has several implications for prospective Crave franchisees. First, the franchise agreement grants a non-exclusive license, meaning other businesses or individuals could be authorized to use the Crave marks, potentially in the same geographic area. This could lead to increased competition or brand confusion in the market. Second, Crave reserves the right to develop and establish other systems using the same marks or different ones, and to grant licenses or franchises in those systems without providing any rights to existing franchisees. This could result in the creation of competing business models or brands under the Crave umbrella.
Finally, Crave can engage directly or indirectly in the production, distribution, and sale of products and services using the marks, potentially competing with its own franchisees. While this is not uncommon in franchising, it is important for franchisees to understand that Crave's interests may not always align perfectly with their own, and that Crave retains significant control over the use and licensing of its trademarks.