If a Non-Traditional Site is within a Crave franchisee's Designated Territory, is the Non-Traditional Site included in the territory?

According to Crave's 2025 Franchise Disclosure Document, if a Non-Traditional Site is located within a franchisee's Designated Territory, the Non-Traditional Site is explicitly excluded from the franchisee's territory. This means the franchisee has no rights to operate at that specific Non-Traditional Site location.

This exclusion of Non-Traditional Sites from a franchisee's Designated Territory has significant implications. Crave retains the right to operate or franchise others to operate within these Non-Traditional Sites, even if they fall within an existing franchisee's territory. This can create potential competition within the franchisee's area, as Crave can establish additional outlets in locations such as gas stations, airports, military bases, or amusement parks, without the franchisee's consent.

This arrangement is not uncommon in the franchise industry, particularly for brands seeking to expand rapidly into diverse locations. However, it's crucial for prospective Crave franchisees to understand that their Designated Territory is not exclusive and that Crave retains considerable flexibility in establishing additional outlets within that territory, especially in Non-Traditional Sites. Franchisees should carefully evaluate the potential impact of this provision on their business and revenue projections.