Does Crave retain the right to operate Crave outlets outside the Development Area?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
7.3 Except as provided in Section 6 hereof, the Development Rights granted hereunder are non-exclusive, and we retain the right, in our sole discretion:
7.3.1 To continue to construct and operate other dedicated Crave outlets and to use the System and the Marks at any location outside the Development Area, and to license others to do so.
7.3.2 To develop, use and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignia, or copyrights not designated by us as Marks for use with different franchise systems for the sale of the different products or services not in connection with the System at any location, on such terms and conditions as we may deem advisable and without granting you any rights therein.
7.3.3 To develop, merchandise, sell and license others to sell any of our products, proprietary or otherwise, presently existing or to be developed in the future, to the public through alternative distribution channels outside or inside of the Development Area and to use the Marks in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains specific rights regarding the operation of Crave outlets outside a franchisee's Development Area. Crave has the right to continue to construct and operate other dedicated Crave outlets and to use the System and the Marks at any location outside the Development Area, and to license others to do so. This means that while a franchisee may have certain protected rights within their Development Area, Crave is not restricted from opening or franchising other locations outside of that area.
Crave also retains the right to develop, use, and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignia, or copyrights not designated as Marks for use with different franchise systems for the sale of different products or services not in connection with the System at any location. Additionally, Crave can develop, merchandise, sell, and license others to sell any of their products, proprietary or otherwise, presently existing or to be developed in the future, to the public through alternative distribution channels outside or inside of the Development Area and to use the Marks in connection therewith.
These stipulations highlight that the Development Rights granted to a franchisee are non-exclusive, except as specifically outlined in Section 6 of the agreement. Crave maintains broad discretion to operate and franchise outside the Development Area, which could include using alternative distribution channels or different branding for other products or services. Prospective franchisees should be aware that Crave's retained rights could lead to increased competition or market saturation in areas adjacent to their Development Area.