What is granted to the Crave franchisee pursuant to the terms and conditions of the agreement?
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave Franchise Disclosure Document, the franchise agreement grants the franchisee the right to select sites for establishing Franchised Businesses, subject to Crave's approval. However, the agreement itself does not automatically grant the franchisee the right to use Crave's trademarks or system, or to open and operate any Franchised Businesses within the Development Area. These rights are only obtained upon the execution of each Franchise Agreement by both the franchisee and Crave, and only in accordance with the terms of each Franchise Agreement.
Furthermore, the development rights granted to the franchisee are personal and cannot be sold, assigned, transferred, or encumbered, except as explicitly stated in Section 11 of the agreement. These development rights are also non-exclusive, meaning Crave retains the right to construct and operate other dedicated Crave outlets, and to use the System and Marks at any location outside the Development Area, and to license others to do so. Crave also retains the right to develop, use, and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignia, or copyrights not designated as Marks for use with different franchise systems for the sale of different products or services not in connection with the System at any location.
Crave also retains the right to develop, merchandise, sell, and license others to sell any of their 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. The franchisee has sole responsibility for the performance of all obligations arising out of the operation of their 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.
In essence, while the agreement allows the franchisee to propose sites for Crave locations, the actual rights to operate under the Crave brand are granted separately for each location through individual franchise agreements. This structure gives Crave significant control over brand development and allows them to pursue alternative distribution channels and operate outside the franchisee's development area.