Under the Crave Franchise Agreement, what is covered in Article 1?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ove) is located within the physical boundaries of your Designated Territory, then the premises of this Non-Traditional Site will not be included in your Designated Territory and you will have no rights to this Non-Traditional Site.
- 1.5.3 This Section 1.5 does not prohibit us or our affiliates from: (a) operating and franchising others to operate, during the Initial Term, Crave businesses at any location outside of the Designated Territory; (b) operating and franchising others to operate, after this Agreement terminates or expires, Crave businesses at any location, including locations inside the Designated Territory; and (c) operating and franchising others to operate at any location, during or after the Initial Term, any type of restaurant or distribution model other than a dedicated Crave Restaurant.
- 1.5.4 The restrictions contained in this Section do not apply to Crave businesses in operation, under lease or construction or other commitment to open in the Designated Territory as of the Effective Date.
- 1.5.5 Except as expressly limited by this Section 1.5, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area and at any location, regardless
of the proximity to the Franchised Business or the economic effect on your Franchised Business or activities under this Agreement.
1.6 Forms of Agreement
You acknowledge that, over time, we have entered, and will continue to enter, into agreements with other franchisees that may contain provisions, conditions and obligations that differ from those contained in this Agreement. The existence of different forms of agreement and the fact that we and other franchisees may have different rights and obligations does not affect our or your duties to comply with the terms of this Agreement.
ARTICLE 2 SITE SELECTION, PLANS AND CONSTRUCTION
2.1 Your Responsibility to Locate a Site
You assume all cost, liability, expense and responsibility for locating, obtaining and developing a site for the Franchised Business within the Designated Territory, and for constructing and equipping the Restaurant at such site. You shall not make any binding commitment to a prospective vendor or lessor of real estate with respect to a site for the Restaurant unless the site is approved by us as set forth below. You acknowledge that the location, selection, procurement and development of a site for the Restaurant is your responsibility;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Article 1 of the Crave Franchise Agreement pertains to the accepted location and designated territory for the franchised business. Specifically, Section 1.2 of the Franchise Agreement relates to the accepted location of the Franchised Business. Section 1.4 concerns the designated territory granted to the franchisee.
Section 1.5 outlines specific stipulations regarding Crave's operations and franchising activities within and outside the franchisee's designated territory. It clarifies that Crave is not prohibited from operating or franchising other Crave businesses outside the designated territory during the initial term. After the agreement terminates or expires, Crave can operate or franchise businesses at any location, including within the former franchisee's designated territory. Additionally, Crave can operate or franchise other types of restaurants or distribution models at any location, regardless of proximity to the franchised business.
Section 1.6 addresses the different forms of agreements Crave may have with other franchisees, acknowledging that these agreements may contain varying provisions, conditions, and obligations. However, it emphasizes that the existence of different agreements does not affect the franchisee's duty to comply with the terms of their specific Franchise Agreement.
Attachment 1 to the Franchise Agreement further details the accepted location and designated territory, which are to be determined and inserted after the premises are approved by Crave. For franchisees operating from a food truck, Sections 1.2 and 1.4 of the Franchise Agreement may be amended to state that there is no accepted location for the franchised business, and the designated territory will be described in an exhibit to the addendum.