Can Crave operate dedicated Crave outlets outside the Development Area, and if so, under what conditions?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
4.4 We and our affiliates retain all rights not expressly granted to you with respect to Crave outlets, the Marks and the sale of any goods and services, anywhere in the world, including, without limitation, the right:
4.4.2 to operate and to grant others the right to operate dedicated Crave outlets located outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to a Franchised Business;
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
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains the right to operate and franchise dedicated Crave outlets outside a franchisee's Development Area under terms and conditions they deem appropriate. Specifically, Crave is not prohibited from operating or franchising others to operate Crave businesses at any location outside of the Designated Territory during the Initial Term of the agreement.
This means that a Crave franchisee's exclusive rights are generally limited to their Designated Territory. Crave retains the freedom to expand the brand's presence outside of that territory, potentially impacting the franchisee's long-term growth opportunities. The FDD also states that Crave and its affiliates retain all rights not expressly granted to the franchisee, including the right to operate and franchise others to operate dedicated Crave outlets outside the Development Area, regardless of proximity to a Franchised Business.
This lack of territorial protection outside the Development Area is a common practice in franchising, as franchisors seek to grow their brand aggressively. However, prospective Crave franchisees should carefully consider the potential impact of this clause on their business, especially if they have ambitions to expand beyond their initial territory. It would be prudent to discuss Crave's expansion plans and strategy for managing potential conflicts between franchisees with the franchisor before signing the agreement.