Besides company-owned and franchised outlets, what other channels of distribution might compete with a Crave Cookies franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
We and our affiliates, either personally or through agents and representatives, exclusively reserve the right to sell Crave products and outlets through non-traditional franchises at our discretion, both within and without your territory, without paying compensation to you. These
franchises may include locations at convention centers, sporting arenas, airports, bookstores, malls, grocery and convenience stores, or other similar locations.
Neither we nor any of our affiliates operates, franchises, or has plans to operate or franchise a business under a different trademark selling menu items, beverages, goods or services similar to those you will offer. However, the franchise agreement does not prohibit us from doing so.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee may face competition from other channels of distribution that Crave Cookies controls. Specifically, Crave Cookies reserves the right to use channels such as the internet, catalog sales, telemarketing, or other direct marketing sales to make sales within a franchisee's territory. Crave Cookies is not obligated to compensate the franchisee for sales made through these other channels within their territory.
Additionally, Crave Cookies and its affiliates exclusively reserve the right to sell Crave Cookies products and outlets through non-traditional franchises at their discretion, both within and without a franchisee's territory, without providing any compensation to the franchisee. These non-traditional venues may include locations such as convention centers, sporting arenas, airports, bookstores, malls, grocery and convenience stores, or other similar locations.
This means that while a Crave Cookies franchisee is granted a territory, Crave Cookies retains significant control over other distribution methods that could directly compete with the franchisee's sales. A prospective franchisee should consider the potential impact of these alternative channels on their revenue and profitability, as well as the lack of compensation for sales made through these channels within their territory. It is important to note that the franchise agreement does not prohibit Crave Cookies from operating or franchising a business under a different trademark selling similar items.