Is Crave permitted to develop other business systems using the Crave trademarks and grant franchises in those systems without providing any rights to existing Crave franchisees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The license to use the Marks granted in the Franchise Agreement is non-exclusive to you. We have and retain certain rights in the Marks including the following:
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- To grant other licenses for the use of the Marks in addition to those licenses already granted or to be granted to franchisees;
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- To develop and establish other systems using the Marks or other names or marks, and to grant licenses or franchises in those systems without providing any rights to you; and
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- To engage, directly or indirectly, at wholesale, retail or otherwise, in (a) the production, distribution, license and sale of products and services and (b) the use of the Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics we may develop for that purpose.
Source: Item 13 — TRADEMARKS (FDD pages 46–47)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains specific rights regarding its trademarks and the development of other business systems. The franchise agreement grants franchisees a non-exclusive license to use Crave's trademarks. This means Crave can grant other licenses for the use of the marks, in addition to those granted to existing franchisees.
Specifically, Crave has the right to develop and establish other systems using the Crave trademarks or other names and marks. Furthermore, Crave can grant licenses or franchises in these other systems without providing any rights to existing Crave franchisees. This clause clarifies that a Crave franchisee's rights are limited to their specific franchise agreement and do not extend to any new systems Crave might create.
Crave also retains the right to engage, directly or indirectly, in the production, distribution, licensing, and sale of products and services, as well as the use of the trademarks and any identifying characteristics it develops. This includes engaging in such activities at the wholesale or retail level. This provision confirms Crave's broad rights to use its trademarks and operate in various capacities, independent of its franchisees' rights.
This arrangement is typical in franchising, where the franchisor retains control over its brand and business systems. Prospective Crave franchisees should understand that their franchise agreement does not prevent Crave from developing competing or complementary systems under the same trademarks, which could potentially impact their business.