factual

If Crave acquires and operates a business in a franchisee's Development Area, is Crave allowed to use the Proprietary Marks?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 12 — TERRITORY (FDD pages 42–46)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, Crave has the right to acquire and operate a business in a franchisee's Development Area. However, Crave is restricted from operating these acquired businesses using Crave's Proprietary Marks.

This condition protects the franchisee's brand exclusivity within their designated Development Area. While Crave can own and run a competing food service business in the same area, it must operate under a different brand, preventing direct competition using the Crave name and branding. This restriction is in place to maintain the value of the Crave franchise for the franchisee.

This policy ensures that Crave franchisees retain a degree of exclusivity and brand recognition within their Development Area, even if Crave itself enters the market with a separate business. Prospective franchisees should understand this limitation on Crave's activities, as it provides some protection against direct brand competition from the franchisor within their territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.