If the Crave agreement is terminated or expires, what action must the franchisee immediately take regarding site selection for Franchised Businesses?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
1.5.3 This Section 1.5 does not prohibit us or our affiliates from: (a) operating and franchising others to operate, during the Initial Term, Crave businesses at any location outside of the Designated Territory; (b) operating and franchising others to operate, after this Agreement terminates or expires, Crave businesses at any location, including locations inside the Designated Territory; and (c) operating and franchising others to operate at any location, during or after the Initial Term, any type of restaurant or distribution model other than a dedicated Crave Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, there is no mention of specific actions a franchisee must immediately take regarding site selection upon termination or expiration of the franchise agreement. The document does outline the franchisee's responsibility to locate a site within ninety (90) days of the agreement's execution, subject to Crave's approval, as detailed in Section 2.2.1.
However, the FDD does state in Section 1.5.3 that after the agreement terminates or expires, Crave has the right to operate or franchise others to operate Crave businesses at any location, including locations inside the franchisee's former Designated Territory. This means that upon termination or expiration, the franchisee loses any territorial exclusivity and Crave is free to establish new locations wherever they see fit.
Since the FDD does not explicitly address site selection responsibilities post-termination, a prospective franchisee should directly ask Crave about any obligations or restrictions related to site selection after the franchise agreement ends. Clarification on this point is crucial for understanding the full scope of post-termination obligations and potential future business activities.