What is the standard radius of the Designated Territory for a Crave Restaurant, assuming it is not a Non-Traditional Site?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement: Your Franchise Agreement will specify the site that will be the "Accepted Location" for your Restaurant. Your Franchise Agreement will also specify a designated territory for the Restaurant. The "Designated Territory" will be a five-mile radius around the Accepted Location, except that if your Accepted Location is a Non-Traditional Site (as described below), you will not receive a Designated Territory. In addition, because we have the right to establish Restaurants at Non-Traditional Sites, or to operate Food Trucks at Non-Traditional Sites (which may be within your Designated Territory), your Designated Territory is not exclusive to you. If you do not yet have an Accepted Location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area listed in Attachment 1 of the Franchise Agreement instead.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the standard designated territory for a Crave Restaurant is a five-mile radius around the Accepted Location, provided that the location is not a Non-Traditional Site. If the Accepted Location is a Non-Traditional Site, the franchisee will not receive a Designated Territory. This means that for a typical Crave Restaurant, the franchisee will have a defined area where Crave will not establish or operate, nor license others to do so, another Crave Restaurant or Food Truck. However, this protection is not absolute.
Even with a Designated Territory, Crave franchisees face competition from other franchisees, company-owned outlets, and other distribution channels or competitive brands controlled by Crave. Furthermore, the territory is not exclusive, as Crave retains the right to operate Food Trucks within the Designated Territory. Additionally, Non-Traditional Sites within the Designated Territory are excluded, meaning the franchisee has no rights to those locations. This significantly limits the scope of the territorial protection.
Crave also retains extensive rights to conduct business activities under any name and in any geographic area, regardless of proximity to the franchisee's location or the economic impact on their business. This includes the right to sell products through alternative distribution channels like the internet, grocery stores, and club stores, without compensating the franchisee, even if the sales occur within the Designated Territory. These provisions highlight the limited nature of the territorial protection offered by Crave, emphasizing that franchisees must be prepared to compete with various other channels and locations, even within their designated area.