Under a Crave Multi-Unit Development Agreement, what is the minimum number of Franchised Businesses that must be established within the Development Area?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
In certain circumstances, we will offer the right to enter into a multi-unit development agreement in the form attached as Exhibit C to this Disclosure Document (the "Multi-Unit Development Agreement") to develop any combination of multiple franchised Restaurants or Food Trucks to be located within a specifically described geographic area (the "Development Area"). We will determine the Development Area before you sign the Multi-Unit Development Agreement, and it will be included in the Multi-Unit Development Agreement. You must establish at least three Franchised Businesses within the Development Area according to a minimum performance schedule, and you must sign a separate Franchise Agreement for each Franchised Business established under the Multi-Unit Development Agreement.
You will sign the Franchise Agreement for the first Franchised Business to be developed under the Multi-Unit Development Agreement at the same time you sign the Multi-Unit Development Agreement. For each additional Crave franchise developed under the Multi-Unit Development Agreement, you must sign the form of Franchise Agreement that we are then offering to new franchisees, which may differ from the current Franchise Agreement included in this Disclosure Document. The size of the Development Area will vary depending upon local market conditions and the number of Franchised Businesses to be developed.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–9)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a Multi-Unit Development Agreement requires the franchisee to establish a minimum number of Franchised Businesses within a specific geographic area, known as the Development Area. The Development Area is determined by Crave before the agreement is signed and is included in the Multi-Unit Development Agreement.
Under the Multi-Unit Development Agreement, a franchisee must establish at least three Franchised Businesses within the Development Area, adhering to a minimum performance schedule. These Franchised Businesses can be any combination of franchised Restaurants or Food Trucks. For each Franchised Business established, a separate Franchise Agreement must be signed.
The Franchise Agreement for the first Franchised Business is signed concurrently with the Multi-Unit Development Agreement. Subsequent Crave franchises developed under the agreement will use the form of Franchise Agreement that Crave is offering to new franchisees at that time, which may differ from the initial agreement. The size of the Development Area will vary based on local market conditions and the number of Franchised Businesses to be developed.