What rights does Crave retain regarding Crave outlets and the Marks that are not expressly granted to the franchisee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.4 We and our affiliates retain all rights not expressly granted to you with respect to Crave outlets, the Marks and the sale of any goods and services, anywhere in the world, including, without limitation, the right:
- 4.4.1 to produce, offer and sell and to grant others the right to produce, offer and sell the products offered at dedicated Crave outlets and any other goods displaying the Marks or other trade and service marks through alternative distribution channels, as described below, both within and outside the Development Area, and under any terms and conditions we deem appropriate. "Alternative distribution channels" include, but are not limited to, the internet, catalog sales, grocery stores, club stores, specialty food stores, telemarketing or other direct marketing sales;
- 4.4.2 to operate and to grant others the right to operate dedicated Crave outlets located outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to a Franchised Business;
- 4.4.3 to operate and to grant others the right to operate dedicated Crave outlets at Non-Traditional Sites within and outside the Development Area under any terms and conditions we deem appropriate, subject to the right of first refusal described in Section 6.2; and
- 4.4.4 to acquire and operate a business operating one or more restaurants or food service businesses located or operating in the Development Area, except that these businesses will not operate using the Proprietary Marks.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains all rights regarding Crave outlets, the Marks, and the sale of goods and services that are not expressly granted to the franchisee. This includes the right to produce, offer, and sell products offered at Crave outlets, as well as any other goods displaying the Marks, through alternative distribution channels such as the internet, catalog sales, grocery stores, club stores, specialty food stores, telemarketing, or other direct marketing sales, both within and outside the Development Area, under terms and conditions Crave deems appropriate.
Crave also retains the right to operate and grant others the right to operate dedicated Crave outlets located outside the Development Area under any terms and conditions they deem appropriate, regardless of proximity to a Franchised Business. Additionally, Crave can operate and grant others the right to operate dedicated Crave outlets at Non-Traditional Sites within and outside the Development Area under any terms and conditions they deem appropriate, subject to the right of first refusal described in Section 6.2 of the agreement.
Furthermore, Crave reserves the right to acquire and operate a business operating one or more restaurants or food service businesses located or operating in the Development Area, as long as these businesses do not operate using the Proprietary Marks. These retained rights allow Crave to explore various avenues for expanding the brand's presence and revenue streams, while franchisees are limited to the rights explicitly granted in their agreements. This is a fairly standard practice in franchising, as it allows the franchisor to adapt to changing market conditions and pursue new opportunities without being unduly restricted by existing franchise agreements.