What rights does the Crave franchisee have to use the Marks or System under the Development Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
1.1 We hereby grant to you, pursuant to the terms and conditions of this Agreement, certain development rights ("Development Rights") to establish and operate the number of Franchised Businesses granted in the Minimum Performance Schedule (defined below), and to use the Marks and System solely in connection therewith, at specific locations to be designated in separate Franchise Agreements executed as provided in Section 3.1 hereof, and pursuant to the schedule established in Attachment 1 of this Agreement (hereinafter "Minimum Performance Schedule"). Each Franchised Business developed
hereunder shall be located in the area described in Attachment 2 of this Agreement (hereinafter "Development Area"). The Minimum Performance Schedule shall be deemed completed, and this Agreement shall expire, upon the opening of the Franchised Business to be developed hereunder.
- 1.2 Each Franchised Business for which a Development Right is granted hereunder shall be established and operated pursuant to a Franchise Agreement to be entered into between you and us in accordance with Section 3.1 hereof.
- 1.3 Except as otherwise provided in this Agreement, we shall not establish, nor franchise anyone other than you to establish, a dedicated Crave outlet in the Development Area during the term of this Agreement, provided you are not in default hereunder.
- 1.4 This Agreement is not a Franchise Agreement and does not grant to you any right to use the Marks or System.
- 1.5 You shall have no right under this Agreement to franchise others under the Marks or System.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Development Agreement grants specific rights to establish and operate a certain number of franchised businesses within a defined Development Area, as outlined in the Minimum Performance Schedule. This includes the right to use Crave's Marks and System, but only in connection with those specific franchised businesses. These rights are tied to locations designated in separate Franchise Agreements.
However, the Development Agreement itself does not grant the franchisee the right to use the Marks or System independently. The franchisee obtains these rights only upon executing individual Franchise Agreements for each location. Furthermore, the franchisee cannot franchise others to use the Marks or System under the Development Agreement.
Crave retains all rights not explicitly granted to the franchisee, including the right to operate Crave outlets, use the Marks, and sell goods and services through alternative channels, both within and outside the Development Area. This includes online sales, grocery stores, and other distribution methods. Crave also has the right to operate or franchise others to operate Crave outlets outside the Development Area and at non-traditional sites, subject to certain rights of first refusal. Therefore, the Development Agreement provides a limited scope of rights, contingent on fulfilling specific obligations and executing subsequent Franchise Agreements.