What is the geographic scope of the protected territory granted to a Crave Cookies franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
on in accordance with Section 6.1. Franchisee shall develop, open and operate a Crave Cookies business at the Location for the entire term of this Agreement.
- 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.
- 2.3 Franchisee Control. Franchisee represents that Attachment 1 (i) identifies each owner, officer and director of Franchisee, and (ii) describes the nature and extent of each owner's interest in Franchisee. If any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify Crave Cookies Franchising within 10 days.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee is granted a protected territory, meaning Crave Cookies Franchising will not establish nor license another business within the Territory (other than in a Limited Access Venue) selling the same or similar items under the Crave Cookies brand. However, Crave Cookies retains the right to establish and license others to establish and operate Crave Cookies businesses outside the Territory, regardless of proximity or impact on the franchisee's business. They can also operate and license businesses anywhere that do not operate under the Crave Cookies brand name and sell/license others to sell products/services in the Territory through other distribution channels, including the internet.
The FDD states that Crave Cookies Franchising determines the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If the territory is not stated in writing within 60 days after the business opens to the public, the territory will be the zip codes immediately surrounding the franchised business location, comprising approximately 75,000 people.
This means that while franchisees are given some territorial protection, Crave Cookies retains significant flexibility to expand its brand through other channels and locations, even if they impact a franchisee's business. A prospective franchisee should carefully consider these limitations and how they might affect the long-term potential of their Crave Cookies franchise. Understanding the specifics of the territory and the potential for encroachment is crucial before investing.