Does Crave Cookies Franchising have the right to establish Crave Cookies businesses outside of a franchisee's territory?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2 Protected Territory. Crave Cookies Franchising shall not establish, nor license the establishment of, another business within the Territory (other than in a Limited Access Venue) selling the same or similar menu items, beverages, goods or services under the same or similar trademarks or service marks as a Crave Cookies business. Crave Cookies Franchising retains the right to:
- (i) establish and license others to establish and operate Crave Cookies businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business;
- (ii) establish and license others to establish and operate Crave Cookies Franchising, LLC businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere that do not operate under the Crave Cookies brand name; and
- (iv) sell and license others to sell products and services in the Territory through channels of distribution (including the internet) other than Crave Cookies outlets.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising retains the right to establish or license others to establish Crave Cookies businesses outside a franchisee's territory. This is explicitly stated, regardless of the proximity to the franchisee's territory or the potential impact on their business. However, within the territory granted to the franchisee, Crave Cookies Franchising agrees not to establish or license another business selling the same or similar items under the Crave Cookies brand, with an exception for Limited Access Venues.
This means that while a franchisee is granted a protected territory, Crave Cookies Franchising can still operate or franchise other locations outside of that territory. This could lead to increased competition in nearby areas, potentially affecting the franchisee's customer base. The franchisee's protected territory is defined by Crave Cookies Franchising and will be provided in writing no later than 60 days after the business opens, or it will be defined as the zip codes immediately surrounding the franchise location comprising 75,000 people.
Furthermore, Crave Cookies Franchising also retains the right to operate or license businesses anywhere that do not operate under the Crave Cookies brand name, and to sell and license others to sell products and services in the territory through other channels of distribution, including the internet, other than Crave Cookies outlets. This allows Crave Cookies Franchising to diversify its business and explore alternative revenue streams without being restricted by the franchisee's protected territory. A prospective franchisee should consider the implications of these rights and how they might affect their business before investing in a Crave Cookies franchise.