What is the significance of the 'Recitals' section in the Crave Food Truck Addendum?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS
WHEREAS, Franchisor and Franchisee are parties to a franchise agreement of even date herewith which grants Franchisee the rights to establish a Crave® franchise in accordance with said agreement (the "Franchise Agreement");
WHEREAS, Franchisee elects, with Franchisor's consent, to operate Franchisee's Franchised Business at and from a food truck ("Food Truck"); and
WHEREAS, Franchisor and Franchisee desire to amend the Franchise Agreement as set forth herein.
NOW, THEREFORE, in consideration of the mutual promises contained in the Franchise Agreement and this Addendum, and for good and valuable considerations in hand paid by each of the parties to the others, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
- Sections 1.2 (Accepted Location) and 1.4 (Designated Territory) of the Franchise Agreement are hereby amended to state there shall be no Accepted Location for the Franchised Business. Section 1.4 (Designated Territory) is further amended by deleting the first paragraph thereof and replacing it with the following:
"Upon the execution of this Agreement, you shall be assigned a territory (the "Designated Territory") that will also be described in Exhibit A of the Addendum. You understand and acknowledge that if your Designated Territory includes a Non-Traditional Site (as described in Section 1.5 of the Franchise Agreement), the Non-Traditional Site is not a part of your Designated Territory and you shall have no right to operate the Food Truck at any Non-Traditional Site without our prior written permission."
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the 'Recitals' section in the Food Truck Addendum outlines the foundational agreements and intentions between Crave and the franchisee specifically for operating a Crave franchise from a food truck. It acknowledges the existence of the original Franchise Agreement and clarifies that the franchisee has elected to operate their franchise via a food truck with Crave's consent.
The Recitals section states that the purpose of the addendum is to amend the original Franchise Agreement to accommodate the specifics of a food truck operation. This includes adjustments to location and territory rights, as the standard agreement typically anticipates a fixed restaurant location. The 'Recitals' section sets the stage for the specific modifications and additions to the original agreement that are detailed in the subsequent sections of the addendum.
In essence, the 'Recitals' section provides context and justification for the Food Truck Addendum, explaining why it is necessary and how it relates to the existing Franchise Agreement. It confirms that both Crave and the franchisee are in agreement regarding the operation of the franchise from a food truck and that they intend to be bound by the terms of both the original agreement and the addendum. This section ensures that all parties understand the basis and purpose of the amended terms, which is crucial for a legally sound and mutually understood franchise relationship.