What is the purpose of the Development Area for Crave?

According to Crave's 2025 Franchise Disclosure Document, the Development Area outlines where a Multi-Unit Developer can establish Crave outlets under the Multi-Unit Development Agreement. The agreement authorizes the developer to establish and operate franchises within this designated area, subject to a Minimum Performance Schedule. This schedule dictates the minimum number of franchise agreements for Crave businesses that must be located and operating within the Development Area by a specific date. Once the final franchised business is opened according to this schedule, the agreement expires.

Crave grants the developer certain rights within the Development Area, including that neither Crave nor its affiliates will develop, operate, or grant franchises to others within the area during the agreement's term, provided the developer complies with all terms, including development obligations and the Minimum Performance Schedule. This exclusivity is limited to dedicated Crave outlets and is subject to specific exceptions outlined in the agreement.

However, upon termination or expiration of the agreement, Crave and its affiliates regain the right to develop and operate franchises within the Development Area, subject to any territorial rights granted to the developer for existing franchised businesses and a right of first refusal. Crave retains rights to operate and franchise Crave outlets at Non-Traditional Sites both within and outside the Development Area, also subject to a right of first refusal. Crave also retains the right to sell products through alternative distribution channels, such as the internet or grocery stores, both within and outside the Development Area.

It's important to note that the Development Rights granted are non-exclusive, allowing Crave to continue operating other dedicated Crave outlets and to use the System and Marks outside the Development Area. Crave also retains the right to develop and franchise other trade names, trademarks, and services not connected to the System at any location. The agreement only includes the right to select sites for Franchised Businesses and submit them for approval; it does not grant a license to use the Marks or the System until a Franchise Agreement is executed for each location.