Does the proximity of other businesses operated by Crave affect a franchisee's rights under the Franchise Agreement?

According to Crave's 2025 Franchise Disclosure Document, the proximity of other businesses, including those operated by Crave, can significantly affect a franchisee's rights. Crave retains considerable freedom to operate or franchise others to operate Crave restaurants or food trucks outside the franchisee's designated territory. After the franchise agreement terminates, Crave can operate or franchise others to operate within the former franchisee's designated territory. Crave is also not restricted from operating or franchising other types of restaurants or food trucks, regardless of their proximity to a franchisee's location.

Crave is not prohibited from operating and/or franchising restaurants or food trucks in non-traditional sites such as gas stations, transportation facilities, military bases, sports facilities, amusement parks, educational facilities, hospitals, hotels, or casinos, even if these are within the franchisee's designated territory. The agreement with Bud's Place Franchising, LLC, allows Crave menu items to be sold in Bud's Place outlets, with an agreement that neither will open a franchised location within five miles of the other.

Crave franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Crave. Crave and its affiliates retain all rights to the Crave brand, restaurants, and food trucks worldwide, including the right to sell products through alternative distribution channels, such as the internet, grocery stores, and club stores, both within and outside the franchisee's development area. Crave also has the right to acquire and operate businesses that compete with Crave within the franchisee's development area, as long as they do not use Crave's proprietary marks.

Except as expressly limited, Crave and its affiliates can conduct business activities under any name, in any geographic area, regardless of proximity to the franchisee's restaurant or food truck, or the economic impact on the franchisee's business. Franchisees may sell menu items to customers anywhere but are restricted from engaging in promotional activities or selling products online outside their designated territory. Crave will fulfill all orders placed through its website, and franchisees are not entitled to any portion of the profits, even if the order originates from or is delivered within their designated territory.