Does the restriction on Crave operating or franchising others to operate Crave businesses within the Designated Territory apply to Crave businesses in operation, under lease, or under construction as of the Effective Date?

According to Crave's 2025 Franchise Disclosure Document, the restrictions on Crave operating or franchising others to operate Crave businesses within the Designated Territory do not apply to Crave businesses already in operation, under lease, or under construction as of the Effective Date. This means that if there are existing Crave locations or locations already committed to opening within your designated territory when your franchise agreement takes effect, Crave is not restricted from continuing to operate or franchise those locations.

This clause protects Crave's existing business and development plans. For a prospective franchisee, this means that your designated territory might already contain existing or planned Crave locations that will not be subject to your territorial exclusivity. It is important to understand the existing Crave presence in your potential territory before signing the franchise agreement.

This exception could impact the potential market and revenue for a new Crave franchise. A prospective franchisee should carefully investigate and understand any existing Crave locations or planned developments within their Designated Territory before finalizing the agreement. Clarifying the specifics of these existing commitments with Crave is crucial to assess the true potential of the territory.