Under what conditions can Crave operate dedicated Crave outlets at Non-Traditional Sites within the Development Area?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.4 We and our affiliates retain all rights not expressly granted to you with respect to Crave outlets, the Marks and the sale of any goods and services, anywhere in the world, including, without limitation, the right:
- 4.4.3 to operate and to grant others the right to operate dedicated Crave outlets at Non-Traditional Sites within and outside the Development Area under any terms and conditions we deem appropriate, subject to the right of first refusal described in Section 6.2;
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 retain the right to operate and grant others the right to operate dedicated Crave outlets at Non-Traditional Sites both within and outside the Development Area. This can be done under any terms and conditions Crave deems appropriate, but it is subject to a right of first refusal as described in Section 6.2 of the agreement.
For a prospective franchisee, this means that while you may have development rights for a specific area, Crave can still establish outlets in Non-Traditional Sites within that area. These sites include locations such as gas stations, convenience stores, airports, train stations, military bases, sports facilities, amusement parks, educational facilities, hospitals, and other similar captive market locations.
This clause protects Crave's ability to pursue opportunities in locations that a typical franchisee might not be able to access or effectively manage. However, it also introduces a potential risk for franchisees, as these Non-Traditional Sites could draw customers away from their dedicated Crave restaurants. The right of first refusal mentioned in the clause may offer some protection, allowing the franchisee to potentially operate the Non-Traditional Site themselves if they meet Crave's terms. Franchisees should carefully consider the implications of this clause and discuss potential Non-Traditional Site developments with Crave during their due diligence.