What is the purpose of the Food Truck Addendum to the Crave Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Addendum | (the "Addendum') is being entered into this day of | ||
|---|---|---|---|
| , (the "Effective Date") 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:
- 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."
-
- 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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave Franchise Disclosure Document, the Food Truck Addendum serves to modify the existing Franchise Agreement when a franchisee chooses to operate their Crave franchise from a food truck, with Crave's consent. The Addendum adjusts specific sections of the original agreement to accommodate the unique aspects of a mobile food truck business.
For instance, the Addendum addresses the absence of a fixed location by stating that there will be no Accepted Location for the Franchised Business. It also modifies the Designated Territory terms, clarifying that while a territory is assigned, non-traditional sites within that territory are not automatically included and require prior written permission from Crave to operate the food truck there. This ensures Crave maintains control over where food trucks operate, especially in potentially high-traffic areas.
Furthermore, the Addendum outlines specific obligations for the franchisee related to the food truck's maintenance and appearance. Franchisees are required to keep the food truck in good working order, maintain a clean exterior, promptly repair any damage, and have the truck professionally washed at least once a week. They must also comply with state registration and inspection requirements and provide Crave with copies of maintenance and repair records upon request. These stipulations ensure that Crave's brand image is upheld through the proper care and presentation of the food truck.
Finally, the addendum adjusts certain fees and obligations, such as deleting the Brand Development Fee and reducing the Grand Opening Marketing expenditure from $5,000 to $2,500. It also specifies that the royalty fee for a Crave food truck is 8% of Gross Sales and requires separate royalty reports for the food truck. These financial adjustments reflect the different cost structure and operational considerations of a food truck compared to a traditional brick-and-mortar Crave restaurant.