Under the Crave franchise agreement, what topics are covered in Article 1 regarding the grant of the franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
d acknowledge the importance of our high standards of quality, cleanliness, appearance and service and the necessity of operating the business franchised hereunder in conformity with our standards and specifications; and
WHEREAS, you desire to use the System in connection with the operation of a Restaurant at an accepted location as herein provided, as well as to receive the training and other assistance provided by us in connection therewith.
NOW, THEREFORE, the parties, in consideration of the mutual undertakings and commitments set forth 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. This Agreement does not grant to you the right or license to operate the Franchised Business or to offer or sell any products or services described under this Agreement at or from any location other than the Accepted Location.
1.3 Relocation
If you are unable to continue the operation of the Franchised Business at the Accepted Location because of the occurrence of a force majeure event (as described in Section 17.1.3(e)), then you may request our approval to relocate the Franchised Business to another location in the Designated Territory, as that term is defined below, which approval shall not be unreasonably withheld. Any other relocation outside the Designated Territory or a relocation of the Franchised Business not caused by force majeure shall also be subject to our prior approval. If we elect to grant you the right to relocate the Franchised Business, then you shall comply with the site selection and construction proceduresset forth in Article 2.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Article 1 of the franchise agreement covers the grant of the franchise and the accepted location. Section 1.1 discusses the grant of the franchise, stating that Crave grants the franchisee the right and license to operate a Crave business under the trademarks and system, based on the franchisee's representations and warranties. It emphasizes that Crave relies on the franchisee's business skills, financial capacity, and personal character when granting these rights. The agreement specifies that the franchise rights cannot be transferred until the franchised business is open to the public and in accordance with Article 14.
Section 1.2 of the Crave franchise agreement addresses the accepted location of the franchised business. The specific street address, once approved by Crave, will be detailed in Attachment 1. The franchisee is prohibited from relocating the business without Crave's prior written consent, which Crave will not unreasonably withhold. Furthermore, the agreement clarifies that the franchisee's rights are limited to the approved location, and they cannot operate the franchised business or offer products/services from any other location without explicit permission.
Attachment 1 to the Crave franchise agreement further elaborates on the accepted location and designated territory. It indicates that if there is no accepted location on the effective date, the address and designated territory will be determined and inserted after the premises are approved by Crave, in accordance with Sections 1.2 and 2.2 of the franchise agreement. This attachment also includes spaces for the signatures of Crave Franchising, LLC representatives, including the CEO and COO.