Under the Crave Multi-Unit Development Agreement, what right is granted to the developer?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Multi-Unit Development Agreement: Under the Multi-Unit Development Agreement we grant you the right to develop and operate (under separate Franchise Agreements) the number of Crave Restaurants or Food Trucks in the Development Area that is specified in the Minimum Performance Schedule, which is an attachment to the Multi-Unit Development Agreement. The Development Area is typically described in terms of municipal or county boundaries but may be defined as a specified trade area in a municipality. The actual size of the Development Area will vary depending upon the availability of
contiguous markets, our long-range development plans, your financial and operational resources, the number and mix of Restaurants and Food Trucks you commit to develop, population, and market conditions. Our designation of a particular Development Area is not an assurance or warranty that there are enough suitable sites for Restaurants or suitable municipalities for Food Trucks in the Development Area for you to meet your Minimum Performance Schedule. The responsibility to locate and prepare enough suitable sites/municipalities is solely yours and we have no obligation to approve sites or municipalities which do not meet our criteria for you to meet the Minimum Performance Schedule.
Except as described below, during the term of the Multi-Unit Development Agreement, we and our affiliates will not operate or grant a franchise for the operation of Restaurants or Food Trucks to be located or to operate within the Development Area. However, we have the right to terminate this provision if you are not in full compliance with all the terms and conditions of the Multi-Unit Development Agreement and all of the Franchise Agreements signed under it. Your territorial rights to the Development Area may or may not, in our discretion, include the right to develop Restaurants or operate Food Trucks at any Non-Traditional Sites. Because we have the right to develop Restaurants or operate Food Trucks at Non-Traditional Sites, as described above, your Development Area is not exclusive to you.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement grants the developer the right to develop and operate a specified number of Crave Restaurants or Food Trucks within a defined Development Area, under separate Franchise Agreements. The number of units and the specific area are detailed in the Minimum Performance Schedule attached to the agreement. The Development Area is typically defined by municipal or county boundaries but can also be a specified trade area within a municipality.
The actual size of the Development Area varies based on several factors, including the availability of contiguous markets, Crave's long-term development plans, the developer's financial and operational resources, the number and mix of Restaurants and Food Trucks the developer commits to, population density, and overall market conditions. However, Crave does not guarantee that there will be enough suitable locations within the Development Area for the developer to meet the Minimum Performance Schedule. The responsibility for finding and preparing suitable sites or municipalities rests solely with the developer, and Crave is not obligated to approve sites or municipalities that do not meet its criteria.
During the term of the Multi-Unit Development Agreement, Crave and its affiliates will not operate or grant franchises for Restaurants or Food Trucks within the Development Area, with the exception of Non-Traditional Sites. However, Crave retains the right to terminate this exclusivity if the developer fails to comply with the terms and conditions of the Multi-Unit Development Agreement and all related Franchise Agreements. Because Crave reserves the right to develop Restaurants or operate Food Trucks at Non-Traditional Sites, the Development Area is not exclusive to the developer. To maintain rights under the Multi-Unit Development Agreement, the developer must have the cumulative number of Franchised Businesses open and operating by the dates specified in the Minimum Performance Schedule. Failure to meet this schedule may result in loss of territorial exclusivity or termination of the agreement.