What happens if a Crave franchisee operates the Franchised Business at an unapproved location?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
r license to operate the Franchised Business or to offer or sell any products or services described under this Agreement at or from any location other than the Accepted Location.
1.3 Relocation
If you are unable to continue the operation of the Franchised Business at the Accepted Location because of the occurrence of a force majeure event (as described in Section 17.1.3(e)), then you may request our approval to relocate the Franchised Business to another location in the Designated Territory, as that term is defined below, which approval shall not be unreasonably withheld. Any other relocation outside the Designated Territory or a relocation of the Franchised Business not caused by force majeure shall also be subject to our prior approval. If we elect to grant you the right to relocate the Franchised Business, then you shall comply with the site selection and construction proceduresset forth in Article 2. When you submit to us your relocation request, you shall pay to us a non-refundable relocation fee in an amount equal to Five Thousand Dollars ($5,000). We shall issue a revised Attachment 1, in accordance with Section 1.2, to reflect the new address of the Accepted Location.
1.4 Designated Territory
Upon the execution of this Agreement or when the Accepted Location is determined, whichever occurs later, you may be assigned a territory (the "Designated Territory") that will also be described in Attachment 1. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
The 2025 Crave Franchise Disclosure Document outlines specific location-related stipulations. If a franchisee is unable to continue operating at the original approved location due to a force majeure event, they can request approval to relocate within their designated territory, which Crave will not unreasonably withhold. However, any relocation outside the designated territory or one not caused by a force majeure event requires Crave's prior approval.
To relocate, the franchisee must comply with Crave's site selection and construction procedures and pay a non-refundable relocation fee of $5,000. Upon approval, Crave will issue a revised attachment reflecting the new approved location. If the accepted location is a non-traditional site, the franchisee will not receive a designated territory.
Operating at an unapproved location could be considered a breach of the franchise agreement. The franchisee agrees not to perform any act that would be injurious or prejudicial to the goodwill associated with the Crave system. This includes actions that could interfere with the business of Crave or its franchisees. Unauthorized operation from a different location could potentially harm the brand's image, create confusion among customers, or encroach on other franchisees' territories, leading to possible legal and financial repercussions.