Do the restrictions in Section 1.5 apply to Crave businesses in operation, under lease or construction or other commitment to open in the Designated Territory as of the Effective Date?

According to Crave's 2025 Franchise Disclosure Document, the restrictions outlined in Section 1.5 do not apply to Crave businesses that are already in operation, under lease, in construction, or have other commitments to open within the Designated Territory as of the Effective Date. This means that any existing Crave locations or projects already underway within a franchisee's designated territory are not subject to the restrictions detailed in that section.

This clause protects existing Crave businesses and those with established plans from being affected by new restrictions that might be introduced. For a new franchisee, this means that they should be aware of any existing Crave locations or planned developments in their territory, as these are exempt from certain restrictions that might otherwise apply.

It is important for prospective franchisees to fully understand Section 1.5 and how it interacts with this exception to assess the competitive landscape within their designated territory. Understanding these exceptions can help a franchisee better strategize their business operations and avoid potential conflicts or misunderstandings with the franchisor or other franchisees.