Under what conditions do I have a right of first refusal to obtain Development Rights for additional Crave Franchised Businesses after completing the Minimum Performance Schedule?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
6.3 Upon completion of the Minimum Performance Schedule, if we determine that it is desirable to operate one or more additional Restaurants or Food Trucks in the Development Area, and provided you have timely complied with the Minimum Performance Schedule and are then in compliance with all terms and conditions of all Franchise Agreements, you shall have a right of first refusal to obtain the Development Rights to such additional Franchised Businesses upon such reasonable terms and conditions as are then determined by us including, but not limited to, the imposition of a new Development Fee and the payment of the then-current initial fees upon execution of the then-current Franchise Agreements. In such case, we shall advise you in writing of the terms and conditions for the acquisition of the Development Rights for such additional Franchised Businesses. You must notify us in writing within sixty (60) days of the receipt of such notice whether you wish to acquire the Development Rights to such additional Franchised Businesses. If you do not exercise this right of first refusal, in whole, we may, following the expiration of the sixty (60) day period, grant the Development Rights to such additional Franchised Businesses to any other person or persons on the same terms and conditions or we may elect to develop, construct and/or operate any of such additional Restaurants or Food Trucks.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, after completing the Minimum Performance Schedule, a franchisee may have a right of first refusal for additional development rights. This right is conditional upon Crave determining it is desirable to operate more restaurants or food trucks in the Development Area. To qualify, the franchisee must have complied with the Minimum Performance Schedule on time and be in compliance with all terms and conditions of their existing Franchise Agreements.
If Crave decides to offer this right, they will provide written notice to the franchisee, outlining the terms and conditions for acquiring the additional Development Rights. These terms may include a new Development Fee and the then-current initial fees for the new Franchise Agreements. The franchisee must then notify Crave in writing within sixty (60) days of receiving the notice if they wish to acquire these additional Development Rights.
If the franchisee does not exercise their right of first refusal within the 60-day period, Crave has the right to grant the Development Rights to others under the same terms and conditions. Alternatively, Crave may choose to develop, construct, and operate the additional restaurants or food trucks themselves. This clause ensures that compliant and successful franchisees have the first opportunity to expand their presence within their Development Area, but it does not guarantee expansion rights.