If I do not exercise my right of first refusal for additional Crave Franchised Businesses, what options does Crave have?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon completion of the Minimum Performance Schedule, if we determine that it is desirable to operate one or more additional Restaurants or Food Trucks in the Development Area, and provided you have timely complied with the Minimum Performance Schedule and are then in compliance with all terms and conditions of all Franchise Agreements, you shall have a right of first refusal to obtain the Development Rights to such additional Franchised Businesses upon such reasonable terms and conditions as are then determined by us including, but not limited to, the imposition of a new Development Fee and the payment of the then-current initial fees upon execution of the then-current Franchise Agreements. In such case, we shall advise you in writing of the terms and conditions for the acquisition of the Development Rights for such additional Franchised Businesses. You must notify us in writing within sixty (60) days of the receipt of such notice whether you wish to acquire the Development Rights to such additional Franchised Businesses. If you do not exercise this right of first refusal, in whole, we may, following the expiration of the sixty (60) day period, grant the Development Rights to such additional Franchised Businesses to any other person or persons on the same terms and conditions or we may elect to develop, construct and/or operate any of such additional Restaurants or Food Trucks.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee does not exercise their right of first refusal to obtain development rights for additional franchised businesses in their development area, Crave has the option to grant those development rights to other persons or entities. Alternatively, Crave can choose to develop, construct, and operate any of the additional restaurants or food trucks themselves.
This clause is triggered if, upon completion of the Minimum Performance Schedule, Crave determines that operating additional restaurants or food trucks in the Development Area is desirable. For the franchisee to be offered the right of first refusal, they must have complied with the Minimum Performance Schedule and be in compliance with all terms and conditions of all Franchise Agreements.
The terms and conditions for acquiring development rights for additional franchised businesses are determined by Crave, and may include a new Development Fee and the payment of then-current initial fees upon execution of the then-current Franchise Agreements. Crave will advise the franchisee in writing of these terms and conditions, and the franchisee has 60 days from receipt of the notice to decide whether to exercise their right of first refusal. If the franchisee does not notify Crave in writing within this 60-day period, it is interpreted as a declination of the right of first refusal.