Does Crave have the right to conduct any business activities under any name in any geographic area, regardless of proximity to a franchisee's Crave Restaurant or Food Truck?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly limited above, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area and at any location, regardless of the proximity to your Restaurant or Food Truck or the economic effect on your Restaurant or Food Truck or your activities under the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave and its affiliates retain significant rights to conduct business activities, including those that may compete with a franchisee's location. Specifically, Crave has the right to conduct any business activities, under any name, in any geographic area and at any location, regardless of the proximity to your Restaurant or Food Truck or the economic effect on your Restaurant or Food Truck or your activities under the Franchise Agreement.
This means that even within a franchisee's designated territory, Crave can operate or franchise other businesses, including different types of restaurants or food trucks (other than Crave Restaurants or Food Trucks), under different names. This broad right extends to any geographic area, implying that Crave is not restricted by the franchisee's territory when pursuing other business ventures. This could include operating competing concepts or selling similar products through alternative channels of distribution such as the internet, grocery stores or other retail outlets.
For a prospective franchisee, this lack of exclusivity represents a significant risk. Crave's ability to operate competing businesses, even under different names, within or near a franchisee's territory could dilute the franchisee's market share and revenue. The franchisee has no recourse or protection against such actions by Crave, as explicitly stated in the FDD. This is a common practice in franchising, but the extent of the franchisor's retained rights can vary, so it's important to understand the specific terms.
It is important for potential franchisees to carefully consider the implications of this broad right and how it might impact their business. They should evaluate the market conditions and the potential for competition from Crave or its affiliates before investing in a franchise. Understanding the competitive landscape and Crave's long-term business strategy is crucial for making an informed decision.