Can Crave Cookies establish outlets selling the same goods/services under different trademarks within a franchisee's territory?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ional franchises.
Territory Protection
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Crave Cookies outlet, except for restaurants located in limited access venues or non-traditional outlet. A limited access venues are venues that serve primarily the customers located within a facility, such as enclosed shopping centers, universities, churches and other religious institutions, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes and restricted business complexes. A limited access venue may require an entrance ticket or special permission for a person to be present in a venue.
If your franchise is located in a "limited access venue", then your territory will consist of the venue.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
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. You do not have the right to the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales outside your territory unless you receive written permission from us.
Soliciting by You Outside Your Territory
There are no restrictions on you from soliciting orders from consumers outside of your territory, so long as the territory is not owned by another franchisee. You may accept unsolicited orders from any territory, whether or not they are owned by another franchisee. You may not solicit orders from a territory owned by another franchisee. We must approve all of you marketing and advertising.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, franchisees are granted a protected territory where Crave Cookies will not establish company-owned or franchised outlets selling similar goods or services under the same or similar trademarks. However, this protection does not extend to restaurants located in limited access venues or non-traditional outlets. Limited access venues include enclosed shopping centers, universities, churches, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes, and restricted business complexes.
Crave Cookies retains the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within a franchisee's territory using their principal trademarks or trademarks different from those used under the franchise agreement. Franchisees will not receive compensation for these sales. This means that while Crave Cookies will not open a competing store under the same brand within the franchisee's protected territory (excluding limited access venues), they can still market and sell products using different trademarks through alternative channels.
This policy has significant implications for prospective franchisees. While a franchisee is granted a protected territory, Crave Cookies maintains considerable flexibility in how it operates and distributes its products within that territory. The franchisee's protected territory is typically a radius of five miles or a population of approximately 75,000-100,000 people, whichever is reached first. The franchisee should be aware that Crave Cookies's ability to use different trademarks and alternative distribution channels within their territory could impact their potential revenue and market share.
It is important for potential franchisees to understand the scope and limitations of their territorial protection. They should carefully consider how Crave Cookies's other distribution channels and potential use of different trademarks might affect their business. Further, prospective franchisees should inquire about Crave Cookies's plans for non-traditional outlets and online sales within their potential territory to fully assess the competitive landscape.