Is Crave permitted to develop other systems using the Crave Marks or other names/marks and grant licenses or 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 the use of its trademarks. Crave has the right to develop and establish other systems using the Crave Marks or other names or marks. Furthermore, Crave can grant licenses or franchises in these other systems without providing any rights to existing Crave franchisees. This means that Crave franchisees do not have any inherent right to be involved in or benefit from any new systems or franchises that Crave might create under the same or different branding.
This is a significant consideration for potential Crave franchisees. While franchisees are granted the right to use Crave's trademarks for their specific franchised business, this right is non-exclusive. Crave retains the freedom to expand its brand through different avenues, potentially creating competition or diluting the brand's focus without directly benefiting existing franchisees. This is a fairly common practice in franchising, as franchisors often seek to diversify and grow their brand through various channels.
Therefore, prospective franchisees should be aware that their franchise agreement does not guarantee any protection from internal competition or brand diversification efforts by Crave. It would be prudent for potential franchisees to discuss Crave's future development plans and brand strategy to understand how these plans might impact their investment and business operations. Understanding the long-term vision of Crave is crucial for making an informed decision about investing in a franchise.