factual

What is the purpose of amending the Franchise Agreement with the Crave Food Truck Addendum?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

te") by and between CRAVE Franchising, LLC, a Wyoming limited liability | | | | company, with its principal address at 159 N. Wolcott St. Suite 133, | Casper, WY 82601 | ("Franchisor", | | "we", "our", or "us") and | | , a(n) | | | | , with its principal place of business located at | | | | and | 's principals | , an individual residing at | | | | , | , an individual residing at | | | | and | | | | | | ("Principal(s)"). | and | | | | Principal(s) shall be collectively referred to in this Addendum as "Franchisee", "you", or "your". | |

RECITALS

WHEREAS, Franchisor and Franchisee are parties to a franchise agreement of even date herewith which grants Franchisee the rights to establish a Crave® franchise in accordance with said agreement (the "Franchise Agreement");

WHEREAS, Franchisee elects, with Franchisor's consent, to operate Franchisee's Franchised Business at and from a food truck ("Food Truck"); and

WHEREAS, Franchisor and Franchisee desire to amend the Franchise Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual promises contained in the Franchise Agreement and this Addendum, and for good and valuable considerations in hand paid by each of the parties to the others, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:

  1. Sections 1.2 (Accepted Location) and 1.4 (Designated Territory) of the Franchise Agreement are hereby amended to state there shall be no Accepted Location for the Franchised Business. Section 1.4 (Designated Territory) is further amended by deleting the first paragraph thereof and replacing it with the following:

"Upon the execution of this Agreement, you shall be assigned a territory (the "Designated Territory") that will also be described in Exhibit A of the Addendum. You understand and acknowledge that if your Designated Territory includes a Non-Traditional Site (as described in Section 1.5 of the Franchise Agreement), the Non-Traditional Site is not a part of your Designated Territory and you shall have no right to operate the Food Truck at any Non-Traditional Site without our prior written permission."

    1. Section 1.3 (Relocation) of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
    • "1.3 Relocation. If you are unable to continue the operation of the Food Truck in the Designated Territory, as that term is defined below, because of the occurrence of a force majeure event (as described in Section 17.1.3(e)), then you may request our approval to relocate the operations of the Food Truck to another Designated Territory, which approval shall not be unreasonably withheld. Any other relocation, redefinition or change of the Designated Territory not caused by force majeure shall also be subject to our prior approval. If we elect to grant you the right to relocate, redefine

or alter the Designated Territory, then you shall comply with the site selection procedures set forth in Section 2.2. When you submit to us your relocation request, you shall pay to us a non-refundable relocation fee in an amount equal to Five Thousand Dollars ($5,000)."

    1. Section 2.2 of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
    • "2.2 Site Selection. You must obtain our acceptance of the municipality in which your Food Truck will operate before you begin operations. Once the municipality for your Food Truck has been accepted by us, we shall designate your Designated Territory pursuant to Section 1.4. In the event you are unable to locate a suitable municipality within ninety (90) days following the execution of this Agreement, we may provide an extension of this timeframe or we may terminate this Agreement. You shall not be permitted to operate your Food Truck outside the Designated Territory without our prior written consent."

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, the Food Truck Addendum amends the existing Franchise Agreement to accommodate franchisees who choose to operate their Crave franchise from a food truck. The original agreement is modified to reflect the specific operational and financial considerations associated with a mobile food business rather than a traditional brick-and-mortar location.

The addendum addresses key aspects of the franchise relationship, including territory rights, site selection, and fees. Specifically, the addendum modifies sections related to the accepted location and designated territory, acknowledging that food trucks do not have a fixed location in the same way as a traditional franchise. It also outlines the process for relocating the food truck's operations due to unforeseen circumstances, potentially requiring a $5,000 relocation fee.

Furthermore, the Food Truck Addendum adjusts certain financial obligations. While the franchisee has no obligation to pay a Brand Development Fee, the grand opening marketing expenditure is reduced from $5,000 to $2,500. The addendum also specifies that the continuing weekly royalty fee for a Crave food truck is eight percent (8%) of Gross Sales, and that separate royalty reports must be provided for the food truck operation. These amendments ensure that the financial terms are appropriate for the food truck model.

Finally, the addendum includes provisions related to the maintenance and appearance of the food truck, requiring the franchisee to keep it in good working order and clean condition. The franchisee must also provide Crave with copies of all maintenance and repair records upon request, maintain the exterior of the Food Truck in clean and good appearance, promptly repair all scratches and dents and shall have the Food Truck professionally washed no less than one (1) time per week; and file all required state registration and inspection reports for the Food Truck. The franchisee is also responsible for submitting the Food Truck for annual vehicle inspection, as required by state law, and submit such reports to Crave, and pay all registration and inspections fees. These requirements ensure that the Crave brand is consistently represented, even in a mobile setting.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.