Regarding Crave franchises, what is the policy for Multi-Unit Developers?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
( The Agreement authorizes and obliges Multi-Unit Developer ) "Crave" outlets to establish and operate pursuant to a Franchise Agreement for each Franchised Business. The following is Multi-Unit Developer's Minimum Performance Schedule: Minimum Cumulative Number By this Date of Franchise Agreements for Franchised Businesses to be located and Operating within the Development Area Total: upon the opening of the final Franchised Business The Minimum Performance Schedule shall be deemed completed, and this Agreement shall expire, to be developed pursuant to this Agreement. APPROVED: MULTI-UNIT DEVELOPER: CRAVE FRANCHISING, LLC Samantha Rincione CEO and COO
4.2 Provided you are in full compliance with all the terms and conditions of this Agreement, including without limitation your development obligations described in Section 3.2 and the Minimum Performance Schedule, and you are in full compliance with all of your obligations under all franchise agreements executed pursuant to this Agreement, then during the term of this Agreement neither we nor any of our affiliates will develop or operate or grant franchises for the development or operation of Franchised Businesses within the Development Area, except the franchises that are granted to you pursuant to this Agreement and except as otherwise expressly provided in this Agreement.
4.3 Upon the termination or expiration of this Agreement, we and our affiliates shall have the right to develop and operate, and to grant to others development rights and franchises to develop and operate, dedicated Crave outlets within the Development Area subject only to the territorial rights granted to you with respect to Franchised Businesses operated by you pursuant to the Franchise Agreements and subject, further, to the right of first refusal described in Section 6 below.
11.5.4 We are reasonably satisfied that the transferee meets all of our requirements for new multi-unit developers, including but not limited to, good reputation and character, business acumen, operational ability, management skills, financial strength and other business considerations.
11.5.5 Transferee executes or, in appropriate circumstances, causes all necessary parties to execute, our standard form of Multi-Unit Development Agreement, Franchise Agreements for all Franchised Businesses open or under construction hereunder, and such other then-current ancillary agreements being required by us of new multi-unit developers on the date of transfer.
11.5.7 When you submit your request for our approval of the transfer, you shall pay to us a transfer fee equal to Five Thousand Dollars ($5,000) to cover our reasonable costs in effecting the transfer and in providing training and other initial assistance to transferee.
In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.
-
- The provisions in the Multi-Unit Development Agreement which provide for termination upon bankruptcy of the multi-unit developer may not be enforceable under federal bankruptcy law (11 U.S.C.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchise offers Multi-Unit Development Agreements. These agreements authorize and obligate the Multi-Unit Developer to establish and operate Crave outlets, with each outlet requiring a separate Franchise Agreement. The Multi-Unit Developer must adhere to a Minimum Performance Schedule, which dictates the number of Franchised 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.
The FDD also states that Crave will not develop, operate, or grant franchises to others within the Development Area during the agreement's term, provided the Multi-Unit Developer complies with all terms, including development obligations and the Minimum Performance Schedule. This exclusivity is subject to the franchises granted to the developer under the agreement and any other express provisions within the agreement. Upon termination or expiration of the agreement, Crave has the right to develop and grant franchises to others in the Development Area, subject to any territorial rights granted to the franchisee and a right of first refusal.
Furthermore, the FDD outlines conditions for the sale, assignment, or transfer of the Multi-Unit Development Agreement. Crave will not unreasonably withhold consent to a transfer if the transferee assumes all obligations, pays all debts to Crave, is not in default, meets Crave's requirements for new multi-unit developers (including good reputation, business acumen, and financial strength), executes Crave's standard agreements, and provides a general release of claims against Crave. The transferor must also pay a transfer fee of $5,000 to cover Crave's costs in effecting the transfer and providing training to the transferee.
Finally, the FDD mentions that in Maryland, all development fees and initial payments by area developers are deferred until the first franchise under the development agreement opens. This addendum also states that the provisions in the Multi-Unit Development Agreement which provide for termination upon bankruptcy of the multi-unit developer may not be enforceable under federal bankruptcy law.