What happens to Crave's right to develop and operate franchises within the Development Area upon the termination or expiration of the Franchise Agreement?

According to Crave's 2025 Franchise Disclosure Document, upon the termination or expiration of the Development Agreement, Crave and its affiliates regain the right to develop and operate Crave outlets, as well as grant development rights and franchises to others within the Development Area. This is subject to any territorial rights the franchisee may have concerning Franchised Businesses they operate under existing Franchise Agreements and any right of first refusal detailed in Section 6 of the agreement.

This means that once the Development Agreement concludes, Crave is no longer restricted from opening its own stores or franchising others in the area that was previously exclusive to the developer, except for locations where the developer already has an operating franchise. The franchisee's existing franchised locations are protected by the terms of their individual Franchise Agreements.

This provision is standard in franchise development agreements. It ensures that Crave can continue to expand its brand presence even if a developer's agreement ends. A prospective franchisee should carefully review Section 6 of the Development Agreement to fully understand any right of first refusal they may have, as this could provide an opportunity to secure additional locations before Crave opens them up to other franchisees or corporate-owned stores.