Under what condition will a Crave franchisee NOT receive a Designated Territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee will not receive a Designated Territory if their Accepted Location is a Non-Traditional Site. The Franchise Agreement will specify the Accepted Location for the Restaurant and a Designated Territory, which is typically a five-mile radius around the Accepted Location. However, this does not apply to Non-Traditional Sites.
This means that if a Crave franchise is located in a Non-Traditional Site such as a gas station, airport, or sports stadium, the franchisee will not have a protected territory. This is a significant consideration for prospective franchisees, as the lack of a Designated Territory could lead to increased competition from other Crave outlets or alternative distribution channels.
It is important to note that even with a Designated Territory, Crave franchisees may still face competition from other franchisees, company-owned outlets, or other channels of distribution. The FDD also states that Crave retains the right to operate or franchise others to operate at Non-Traditional Sites within a franchisee's Designated Territory. Therefore, a Designated Territory does not guarantee exclusivity.