Can Crave operate or franchise restaurants in gas stations within my designated territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
initial franchise fee when you sign the new Franchise Agreement, but you must pay our relocation fee.
Nothing in the Franchise Agreement will prohibit us from: (1) operating and/or franchising others to operate restaurants or food trucks identified in whole or in part by the Proprietary Marks and/or utilizing the System in the Designated Territory that are located in gas stations or convenience stores; transportation facilities, including airports, train stations, subways and rail and bus stations; military bases and government offices; sports facilities, including stadiums and arenas; amusement parks, zoos and convention centers; car and truck rest stops and travel centers; educational facilities; recreational theme parks; hospitals; hotels; business or industrial foodservice venues; venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider; Indian reservations; casinos; or any similar captive market location not reasonably available to you (a "Non-Traditional Site"); (2) awarding national, regional or local licenses to third parties to sell products under the Proprietary Marks in foodservice facilities primarily identified by the third party's trademark; (3) merchandising and distributing products identified by the Proprietary Marks in the Designated Territory through any method or channel of distribution other than through the operation of a restaurant or food truck, including distribution of products (including any proprietary products) through grocery stores, club stores and similar stores; (4) selling and distributing products identified by the Proprietary Marks in the Designated Territory to restaurants other than Restaurants identified by the Proprietary Marks, regardless of whether the restaurants are licensed to use the Proprietary Marks in connection with their retail sales or not; (5) selling products and services through other channels of distribution, including the internet, wholesale, mail order and catalog; (6) developing and/or owning other franchise systems for the same or similar products and services using trade names and trademarks other than the Proprietary Marks; and (7) purchasing, being purchased by, merging or combining with businesses that we deem to offer direct competition to Crave businesses. We are not required to pay you any consideration if we exercise any right specified above in the Designated Territory.
According to a license agreement with Bud's Place Franchising, LLC, Crave menu items may be offered and sold in all Bud's Place company-owned and franchised outlets, wherever they are located. Bud's Place Franchising, LLC and we have agreed that neither of us will open a franchised Crave outlet or franchised Bud's Place outlet within five miles of each other.
If any Non-Traditional Site (as described above) is located within the physical boundaries of your Designated Territory, then the premises of this Non-Traditional Site will not be included in your Designated Territory, and you will have no rights to this Non-Traditional Site.
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.
You may sell our menu items to customers who live anywhere but who choose to dine at or from your Restaurant or Food Truck. You may not engage in any promotional activities or sell products or services, whether directly or indirectly, through or on the internet, the world wide web, or any other similar proprietary or common carrier electronic delivery system; through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere;
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchise agreement does not prevent Crave from operating or franchising others to operate restaurants or food trucks identified by their trademarks within your designated territory, specifically in gas stations or convenience stores. These locations are considered "Non-Traditional Sites." If a Non-Traditional Site is within your designated territory's physical boundaries, it will not be included in your territory, meaning you have no rights to it.
This means that even though you have a designated territory, Crave retains the right to establish franchises in locations like gas stations within that territory. You will not receive an exclusive territory, and you may face competition from other franchisees, outlets that Crave owns, or other channels of distribution or competitive brands that Crave controls.
Crave also retains all rights to restaurants, food trucks, marks, and any products and services anywhere in the world, including the right to operate and grant others the right to operate restaurants or food trucks at Non-Traditional Sites within and outside the Development Area under any terms and conditions they deem appropriate. This could significantly impact a franchisee's potential revenue if Crave decides to open additional locations within the franchisee's territory, especially in high-traffic areas like gas stations.