Under what circumstances will a Crave franchisee NOT receive a Designated Territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the execution of this Agreement or when the Accepted Location is determined, whichever occurs later, you may be assigned a territory (the "Designated Territory") that will also be described in Attachment 1. You understand and acknowledge that if your Accepted Location is a Non-Traditional Site (as described in Section 1.5 below), you will not receive a Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee will not receive a Designated Territory if their Accepted Location is a Non-Traditional Site. The franchise agreement outlines that upon execution of the agreement or when the Accepted Location is determined, whichever occurs later, a franchisee may be assigned a Designated Territory, which will be described in Attachment 1. However, this assignment is conditional.
Specifically, if the franchisee's Accepted Location is classified as a Non-Traditional Site, they will not receive a Designated Territory. This distinction is important because it affects the franchisee's exclusive rights and the area in which they can operate without direct competition from other Crave outlets.
Furthermore, an addendum to the franchise agreement clarifies that if a franchisee operates from a food truck, the standard provisions regarding Accepted Location and Designated Territory are amended. In this case, there will be no Accepted Location, and while a Designated Territory may still be assigned, any Non-Traditional Site within that territory is excluded, meaning the franchisee cannot operate the food truck there without prior written permission from Crave.