Under the Crave franchise agreement, what specific right and obligation does the franchisee accept upon the terms and conditions outlined?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
orth herein, the receipt and sufficiency of which are hereby acknowledged, agree as follows:
ARTICLE 1 GRANT
1.1 Grant of Franchise
In reliance on the representations and warranties of you and your Principals hereunder, we hereby grant to you, upon the terms and conditions in this Agreement, the right and license, and you hereby accept the right and obligation, to operate a Crave business under the Marks and the System in accordance with this Agreement. You and the Principals have represented to us that you have entered into this Agreement with the intention to comply fully with the obligations to construct the Franchised Business hereunder and not for the purpose of reselling the rights to develop the Franchised Business. You and the Principals understand and acknowledge that we have granted such rights in reliance on the business skill, financial capacity, personal character of, and expectations of performance hereunder by, you and the Principals and that this Agreement and the rights and obligations hereunder may not be transferred until after the Franchised Business is open for business to the public in accordance with Section 2.7, and then only in accordance with Article 14 hereof.
1.2 Accepted Location
The specific street address of the Franchised Business location as approved by us shall be set forth in Attachment 1 ("Accepted Location") when such Accepted Location is determined. You shall not relocate the Franchised Business without our express prior written consent, which consent shall not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee accepts the right and obligation to operate a Crave business under the brand's trademarks and system, as detailed in the franchise agreement. This grant is made in reliance on the franchisee's representations, warranties, business skills, financial capacity, and personal character. Crave emphasizes that the agreement is based on the expectation that the franchisee will fulfill their obligations to construct the franchised business and not resell the development rights.
The agreement specifies that these rights and obligations cannot be transferred until the franchised business is open to the public, and even then, only under the conditions outlined in Article 14 of the agreement. The specific street address of the approved location for the franchised business will be set forth in Attachment 1, referred to as the "Accepted Location," once it is determined.
The franchisee is not allowed to relocate the franchised business without Crave's express prior written consent, which Crave states will not be unreasonably withheld. Furthermore, the agreement does not grant the franchisee the right to operate the franchised business or sell any products or services from any location other than the Accepted Location. This ensures that the franchisee understands the limitations and responsibilities associated with the franchise grant, emphasizing the importance of adhering to the terms and conditions set forth by Crave.