What specific right does Crave retain even after assigning the franchise agreement?
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 several rights even after assigning the franchise agreement. Specifically, Crave retains all rights not expressly granted to the franchisee with respect to Crave outlets, the Marks, and the sale of any goods and services, anywhere in the world.
This broad reservation of rights allows Crave to operate and franchise other Crave outlets outside the franchisee's Development Area under any terms and conditions they deem appropriate, regardless of proximity to the franchised business. Crave can also operate or franchise Crave outlets at Non-Traditional Sites, both within and outside the Development Area, under any terms they deem appropriate.
Furthermore, Crave retains 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, and telemarketing, both within and outside the Development Area. Crave can also acquire and operate businesses with restaurants or food service businesses in the Development Area, as long as these businesses do not operate using Crave's Proprietary Marks.
For a prospective franchisee, this means that while they are granted specific rights within their Development Area, Crave maintains significant control and flexibility to expand the brand through other channels and locations. Franchisees should carefully consider these retained rights and how they might impact their business before investing in a Crave franchise.