Does Crave retain rights with respect to the Marks anywhere in the world?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly limited by the Multi-Unit Development Agreement, we and our affiliates retain all rights with respect to Restaurants, Food Trucks, the Marks, and any products and services anywhere in the world including the right: (a) to produce, offer and sell and to grant others the right to produce, offer and sell the products offered at Restaurants and any other goods displaying the Marks or other trade and service marks through alternative distribution channels, as described above, both within and outside your Development Area, and under any terms and conditions we deem appropriate; (b) to operate and to grant others the right to operate Restaurants or Food Trucks located outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to your Restaurants or Food Trucks; (c) to operate and to grant others the right to operate Restaurants or Food Trucks at Non-Traditional Sites within and outside the Development Area under any terms and conditions we deem appropriate; and (d) the right to acquire and operate a business operating one or more restaurants, food trucks or food service businesses located or operating in your Development Area, except that these businesses will not operate using the Proprietary Marks.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains significant rights to the brand's trademarks both within and outside a franchisee's designated territory. Specifically, Crave and its affiliates retain all rights with respect to Restaurants, Food Trucks, the Marks, and any products and services anywhere in the world. This includes the right to produce, offer, and sell products displaying the Marks through alternative distribution channels, such as the internet, catalog sales, grocery stores, and telemarketing, both within and outside a franchisee's Development Area.
This means that while a franchisee operates within their designated territory, Crave can still sell products and grant others the right to sell products using the same trademarks through various other channels, potentially creating competition for the franchisee. The franchisee will not receive any compensation for Crave's sales through these alternative distribution channels, even if those sales occur within the franchisee's territory. Furthermore, Crave can operate or franchise others to operate restaurants or food trucks at Non-Traditional Sites such as gas stations, airports, military bases, and amusement parks, even within a franchisee's designated territory.
For a prospective franchisee, this implies that the exclusivity of their territory is limited. Crave retains the right to expand its brand presence through different avenues, which could impact the franchisee's market share and revenue. The franchisee's focus is primarily on operating the physical restaurant or food truck location, while Crave maintains control over broader distribution and brand development strategies. This is a fairly common practice in franchising, where the franchisor seeks to maximize brand exposure and revenue streams beyond individual franchise locations.
It is important for potential Crave franchisees to understand these limitations on territorial exclusivity and how Crave's alternative distribution channels might affect their business. Franchisees should inquire about Crave's plans for these alternative channels and how Crave intends to balance the growth of these channels with the success of its franchisees. Understanding these dynamics is crucial for assessing the potential profitability and long-term viability of a Crave franchise.