Under what circumstances, if any, can the Designated Territory for a Crave franchise be altered before the Franchise Agreement expires or is terminated?

According to Crave's 2025 Franchise Disclosure Document, there are generally no circumstances under which the Designated Territory may be altered before the Franchise Agreement expires or is terminated. The FDD specifies that the franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. This means that while Crave will not establish or operate, nor license any other person to establish or operate, a Restaurant or Food Truck in the Designated Territory, there are exceptions.

Specifically, Crave retains the right to operate or franchise restaurants or food trucks at Non-Traditional Sites within the Designated Territory, such as gas stations, convenience stores, transportation facilities, military bases, sports facilities, amusement parks, educational facilities, hospitals, hotels, and casinos. Additionally, Crave can award licenses to third parties to sell products under its trademarks in foodservice facilities primarily identified by the third party's trademark. Crave also retains the right to sell and distribute products identified by the Proprietary Marks in the Designated Territory through any method or channel of distribution other than through the operation of a restaurant or food truck, including distribution of products through grocery stores, club stores and similar stores.

For franchisees entering into a Multi-Unit Development Agreement, the Development Area may not be altered unless Crave and the franchisee mutually agree to do so. However, failure to meet the Minimum Performance Schedule outlined in the agreement can result in a loss of territorial exclusivity or termination of the agreement. Furthermore, once the last Franchised Business to be developed within the Development Area opens, the franchisee's rights under the Multi-Unit Development Agreement expire, allowing Crave to grant further development rights and franchises within the area, subject to existing franchise agreements and rights of first refusal.