Under what conditions will Crave or its affiliates refrain from developing or granting franchises within the Development Area during the term of the Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Provided you are in full compliance with all the terms and conditions of this Agreement, including without limitation your development obligations described in Section 3.2 and the Minimum Performance Schedule, and you are in full compliance with all of your obligations under all franchise agreements executed pursuant to this Agreement, then during the term of this Agreement neither we nor any of our affiliates will develop or operate or grant franchises for the development or operation of Franchised Businesses within the Development Area, except the franchises that are granted to you pursuant to this Agreement and except as otherwise expressly provided in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave and its affiliates will refrain from developing or granting franchises within the Development Area during the term of the Franchise Agreement if the franchisee is in full compliance with all the terms and conditions of the agreement. This includes meeting development obligations, adhering to the Minimum Performance Schedule, and fulfilling all obligations under all franchise agreements executed pursuant to the agreement.
In practical terms, this means that as long as a Crave franchisee is meeting their contractual obligations, Crave will not open competing locations or grant franchises to others within the franchisee's designated Development Area. This provides a level of territorial protection for the franchisee, incentivizing them to invest and grow their business without direct competition from the franchisor or other franchisees.
However, this protection is contingent on the franchisee's compliance. Failure to meet development schedules or other contractual obligations could result in Crave or its affiliates developing or franchising other businesses within the Development Area. Furthermore, upon termination or expiration of the agreement, Crave and its affiliates have the right to develop and operate, and to grant to others development rights and franchises to develop and operate, dedicated Crave outlets within the Development Area.
It is important for prospective Crave franchisees to carefully review the terms and conditions of the Franchise Agreement, including the development obligations and Minimum Performance Schedule, to fully understand the requirements for maintaining territorial protection. Franchisees should also be aware of the conditions under which Crave retains the right to develop or franchise within the Development Area, such as through alternative distribution channels or at Non-Traditional Sites, even during the term of the agreement.