Can Crave operate or franchise Crave Restaurants or Food Trucks outside of a franchisee's Designated Territory during the Franchise Agreement term?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates are not prohibited from: (1) operating and franchising others to operate, during the term of the Franchise Agreement, Crave Restaurants or Food Trucks at any location outside of the Designated Territory; (2) operating and franchising others to operate, after the Franchise Agreement
terminates or expires, Crave Restaurants or Food Trucks at any location, including locations inside the Designated Territory; and (3) operating and franchising others to operate at any location, during or after the term of the Franchise Agreement, any type of restaurant or food truck other than a Crave Restaurant or Food Truck.
The restrictions above do not apply to Crave Restaurants or Food Trucks in operation, under lease or construction or other commitment to open in the Designated Territory as of the effective date of the Franchise Agreement.
Except as expressly limited above, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area and at any location, regardless of the proximity to your Restaurant or Food Truck or the economic effect on your Restaurant or Food Truck or your activities under the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave and its affiliates are not prohibited from operating or franchising others to operate Crave Restaurants or Food Trucks at any location outside of a franchisee's Designated Territory during the term of the Franchise Agreement. This means that while a franchisee is operating their Crave Restaurant or Food Truck, Crave can still establish other locations outside of that franchisee's territory.
This also extends to after the Franchise Agreement terminates or expires, Crave can operate and franchise others to operate Crave Restaurants or Food Trucks at any location, including locations inside the Designated Territory. Moreover, Crave can operate and franchise other concepts that are not Crave Restaurants or Food Trucks at any location during or after the term of the Franchise Agreement.
However, these rights do not apply to Crave Restaurants or Food Trucks in operation, under lease or construction or other commitment to open in the Designated Territory as of the effective date of the Franchise Agreement. Except as expressly limited, Crave and its affiliates have the right to conduct any business activities, under any name, in any geographic area and at any location, regardless of the proximity to a franchisee's Restaurant or Food Truck or the economic effect on their Restaurant or Food Truck or their activities under the Franchise Agreement. This could create competition for the franchisee.