Does Crave reserve the right to grant licenses for the use of its Marks to entities other than existing Crave franchisees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The right and license of the Marks granted hereunder to you is non-exclusive and we thus have and retain the following rights, among others, subject only to the limitations of Article 1:
- 9.5.1 To grant other licenses for use of the Marks, in addition to those licenses already granted to existing franchisees;
- 9.5.2 To develop and establish other systems using the Marks or other names or marks and to grant licenses thereto without providing any rights to you; and
- 9.5.3 To engage, directly or indirectly, through our employees, representatives, licensees, assigns, agents and others, at wholesale, retail or otherwise, in (a) the production, distribution, license and sale of products and services, and (b) the use in connection with such production, distribution and sale, of the Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics as may be developed or used from time to time by us.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains the right to grant licenses for the use of its Marks to entities other than existing franchisees. Specifically, Crave maintains the right to grant other licenses for the use of the Marks, in addition to those licenses already granted to existing franchisees. This means that Crave is not restricted to only licensing its existing franchisees and can license other businesses or individuals to use its trademarks.
This provision allows Crave to expand its brand presence and revenue streams beyond its current franchise network. It could involve licensing the Marks for specific products, services, or distribution channels that are not covered by the existing franchise agreements. For a potential franchisee, this indicates that Crave's brand and trademarks may appear in various contexts outside of traditional Crave franchise locations.
This right is subject to limitations outlined in Article 1 of the franchise agreement, which likely addresses the franchisee's exclusive territory or other protections. However, generally, Crave has broad discretion in how it chooses to license its Marks, which could include partnerships with other businesses, licensing for merchandise, or other ventures that do not directly compete with the core franchise operations. Franchisees should carefully review Article 1 to understand the specific limitations on Crave's ability to license the Marks to others within their territory or market area.