Does Crave require a franchisee's consent before establishing other franchised or company-owned Restaurants or Food Trucks under a different trade name or trademark?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ven if the customer's order is generated from or delivered to an address in your Designated Territory.
Neither we nor any parent or affiliate has established, or presently intends to establish, other franchised or company-owned Restaurants or Food Trucks which sell our proprietary products or services under a different trade name or trademark, but we have the right to do so in the future, without first obtaining your consent. We describe earlier in this Item 12 what we may do anywhere and at any time.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave is not required to obtain a franchisee's consent before establishing other franchised or company-owned Restaurants or Food Trucks under a different trade name or trademark. Crave retains the right to do so in the future without needing the franchisee's approval. This means that Crave could potentially introduce competing brands or concepts in the same area as a franchisee's location without any obligation to seek the franchisee's permission.
This lack of required consent has significant implications for prospective franchisees. It means that Crave has considerable flexibility in expanding its business and exploring new market opportunities, even if those opportunities might directly compete with existing franchisees. Franchisees should be aware that Crave's strategic decisions regarding new brands or concepts are not subject to their approval, which could impact their market share and profitability.
While this might seem unfavorable to franchisees, it is a fairly common practice in the franchise industry for franchisors to retain control over their brand development and expansion strategies. However, prospective Crave franchisees should carefully consider the potential risks associated with this lack of control and evaluate how it might affect their long-term business prospects. It would be prudent to discuss Crave's future development plans and potential competitive scenarios with the franchisor before making a final investment decision.
Furthermore, the FDD specifies that Crave and its affiliates have the right to conduct any business activities, under any name, in any geographic area and at any location, regardless of the proximity to a franchisee's Restaurant or Food Truck or the economic effect on their business. This reinforces the franchisor's broad discretion in business operations and highlights the importance of understanding the competitive landscape and potential market dynamics before investing in a Crave franchise.