factual

Under the Crave Development Agreement, does the developer have the right to sub-franchise the Crave Marks or System to others?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 7.8 You shall at no time have the right to sub-franchise any of your Development Rights hereunder.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, under the Development Agreement, developers do not have the right to sub-franchise their Development Rights.

This means that while a developer obtains the right to establish and operate a certain number of Crave franchises within a specific area, they cannot grant those rights to another party. The Development Rights granted are personal to the developer and cannot be sold, assigned, transferred, or encumbered, either in whole or in part, except as stated in Section 11 of the agreement.

This restriction ensures that Crave maintains control over who is granted the right to operate franchises under its brand. It also ensures that the company can properly vet and train all franchisees to maintain the quality and consistency of the brand. This is a fairly standard practice in franchising, as franchisors typically want to maintain tight control over their brand and system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.