Does Section 1.5 prohibit Crave from operating and franchising others to operate, during the Initial Term, Crave businesses at any location outside of the Designated Territory?

According to Crave's 2025 Franchise Disclosure Document, Section 1.5 does not prohibit Crave or its affiliates from operating and franchising others to operate Crave businesses at any location outside of the Designated Territory during the Initial Term. This means that even though a franchisee may have a designated territory, Crave retains the right to expand and franchise outside of that territory during the franchisee's initial agreement term.

Crave also retains the right to operate and franchise others to operate Crave businesses at any location, including those inside a franchisee's Designated Territory, after the franchise agreement terminates or expires. Furthermore, Crave can operate and franchise other restaurant or distribution models that are not dedicated Crave Restaurants at any location, both during and after the Initial Term.

This clause emphasizes that the franchisee's territorial rights are limited to dedicated Crave outlets and do not extend to other business models or locations after the agreement ends. A prospective franchisee should be aware that Crave retains significant freedom to operate and franchise outside the Designated Territory, which could potentially impact the franchisee's business, especially after the agreement term.