If a Crave franchisee is permitted to relocate, is a new initial franchise fee required?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Restaurant may not be relocated, and your Food Truck may not relocate to another municipality or operate outside the Designated Territory, without our prior written consent. If, during the term of the Franchise Agreement, you wish to relocate your Restaurant or operate your Food Truck in a different municipality, or if the Restaurant is damaged or destroyed and cannot be repaired within 60 days, you must submit to us in writing the materials we require to consider your request, including information concerning the proposed new location for the Restaurant or new municipality for the Food Truck. You must also meet certain other requirements, such as being in compliance with the Franchise Agreement, the new location meets our then-current requirements for a Crave Restaurant or the new municipality meets our then-current requirements for a Crave Food Truck, and the new location (for a Restaurant) is located within your Designated Territory, and you must sign our then-current form of Franchise Agreement. If we permit you to relocate, you will not pay a new initial franchise fee when you sign the new Franchise Agreement, but you must pay our relocation fee.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee does not have to pay a new initial franchise fee if they are permitted to relocate their restaurant or food truck. However, relocation is not guaranteed, as Crave requires prior written consent.
To request relocation, the franchisee must submit required materials, including information about the proposed new location for a restaurant or the new municipality for a food truck. The franchisee must also be in compliance with the Franchise Agreement, and the new location must meet Crave's then-current requirements. For a restaurant, the new location must be within the Designated Territory.
If Crave permits the relocation, the franchisee will sign the then-current form of the Franchise Agreement and will not be required to pay a new initial franchise fee. However, the franchisee will be responsible for paying Crave's relocation fee. This policy helps to reduce the financial burden on franchisees who need to move their business, but it's important to note that relocation is subject to Crave's approval and compliance with specific requirements.