What is the minimum distance required between a franchised Crave outlet and a franchised Bud's Place outlet?

According to Crave's 2025 Franchise Disclosure Document, a license agreement exists with Bud's Place Franchising, LLC that allows Crave menu items to be sold in all Bud's Place company-owned and franchised locations. As part of this agreement, Crave and Bud's Place Franchising, LLC have agreed that neither will open a franchised Crave outlet nor a franchised Bud's Place outlet within five miles of each other. This creates a buffer zone between the two franchises.

This agreement is significant for prospective Crave franchisees as it protects them from direct competition from a Bud's Place franchise within a five-mile radius. However, it's important to note that this restriction only applies to franchised locations of both brands. The agreement does not prevent company-owned Bud's Place locations from opening near a Crave franchise, nor does it prevent other competing businesses from establishing themselves nearby.

This type of agreement between franchisors is not typical but can be beneficial in specific circumstances where the brands have a collaborative relationship. Franchisees should carefully consider the implications of this agreement and how it might affect their business, especially in areas where Bud's Place already has a strong presence. It is also important to understand the terms of the license agreement between Crave and Bud's Place Franchising, LLC to fully grasp the scope of the collaboration and its potential impact on the franchise.