Under the Crave agreement, what outlets are being discussed in the Development Area?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| The following describes the Development Area | within which Multi-Unit Developer | may locate | ||
|---|---|---|---|---|
| "Crave" outlets | ||||
| under this Agreement: |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 FDD, the Crave agreement discusses dedicated Crave outlets within a specific Development Area. These outlets are the Franchised Businesses that the Multi-Unit Developer is authorized to establish and operate, pursuant to a Franchise Agreement for each Franchised Business. The Multi-Unit Developer must adhere to a Minimum Performance Schedule, which outlines the minimum cumulative number of Franchise Agreements for Franchised Businesses to be located and operating within the Development Area.
Crave retains certain rights within the Development Area, including the right to operate dedicated Crave outlets at Non-Traditional Sites, subject to a right of first refusal for the franchisee. Crave also retains the right to acquire and operate other restaurant or food service businesses within the Development Area, as long as these businesses do not operate using Crave's Proprietary Marks. The franchisee's rights within the Development Area are non-exclusive, allowing Crave to construct and operate other dedicated Crave outlets outside the Development Area and to license others to do so.
The Development Agreement includes attachments that further define the Development Area and the Minimum Performance Schedule. The agreement emphasizes that it only grants the right to select sites for Franchised Businesses, with the actual license to use Crave's Marks and System granted upon the execution of each Franchise Agreement. The approval of a site does not guarantee the success or profitability of the Franchised Business at that location.
Prospective franchisees should carefully review the definition of the Development Area in Attachment 2 and the Minimum Performance Schedule in Attachment 1 to understand their obligations and the extent of their rights. They should also inquire about the criteria Crave uses to define "Non-Traditional Sites" and the specific terms of the right of first refusal. Understanding these details is crucial for assessing the potential and limitations of the franchise opportunity within the Development Area.