What is the required action to maintain rights under the Crave Multi-Unit Development Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
To maintain your rights under the Multi-Unit Development Agreement you must have open and in operation the cumulative number of Franchised Businesses stated on the Minimum Performance Schedule by the dates agreed upon in the Minimum Performance Schedule. Failure to do so will be grounds for either a loss of territorial exclusivity or the termination of the Multi-Unit Development Agreement.
In addition, when the last Franchised Business to be developed within the Development Area opens for business, your rights under the Multi-Unit Development Agreement with respect to the Development Area will have expired and we and our affiliates will have the right to operate and to grant to others development rights and franchises to develop and operate Restaurants and Food Trucks within the Development Area. This right will be subject only to the territorial rights under your franchise agreements for Restaurants and Food Trucks in the Development Area and the right of first refusal to develop additional Franchised Businesses described above. The Development Area may not be altered unless we and you mutually agree to do so. It will not be affected by your sales volume. You are not granted any other option, right of first refusal or similar right to acquire additional Franchised Businesses in your Development Area under the Multi-Unit Development Agreement, except as described above.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a multi-unit developer must have the agreed-upon cumulative number of franchised businesses open and operating by the dates specified in the Minimum Performance Schedule to maintain their rights under the Multi-Unit Development Agreement. Failure to meet this schedule can result in the loss of territorial exclusivity or even the termination of the entire agreement. This schedule is attached to the Multi-Unit Development Agreement.
Furthermore, the agreement expires once the last franchised business to be developed within the Development Area opens. After this point, Crave and its affiliates have the right to operate or grant franchises to others within the Development Area. This is only subject to the territorial rights under the franchisee's existing franchise agreements and any right of first refusal to develop additional franchised businesses.
This means that a Crave multi-unit franchisee's development rights are directly tied to their ability to open units on time. Prospective franchisees should carefully review the Minimum Performance Schedule and assess their capacity to meet the required development timelines. Failing to do so could lead to a loss of territory and business opportunities. The Development Area may not be altered unless both Crave and the franchisee mutually agree to do so, and the sales volume of the franchisee will not affect the Development Area.