Under what circumstances will Crave Cookies not establish a company-owned or franchised outlet within a franchisee's protected territory?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
on 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.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee is granted a protected territory where Crave Cookies will not establish a company-owned or franchised outlet selling the same or 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 are defined as locations that primarily serve customers within a facility, such as enclosed shopping centers, universities, churches, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes, and restricted business complexes. These venues may require an entrance ticket or special permission to enter. If a franchise is located in a limited access venue, the territory consists solely of that venue.
Crave Cookies also reserves the right to sell products and outlets through non-traditional franchises at its discretion, both within and without a franchisee's territory, without providing any compensation to the franchisee. These non-traditional locations may include convention centers, sporting arenas, airports, bookstores, malls, grocery and convenience stores, or other similar locations. This means that while a franchisee has some territorial protection, Crave Cookies can still establish outlets in various locations within that territory that are considered non-traditional.
This policy has significant implications for prospective franchisees. While the franchise agreement grants a protected territory, the exceptions for limited access venues and non-traditional outlets mean that Crave Cookies retains considerable flexibility to establish additional outlets within that territory. A prospective franchisee should carefully consider the potential for competition from these alternative outlets when evaluating the opportunity and projecting potential revenue. It is important to understand the specific types of locations that Crave Cookies considers to be non-traditional and how these might impact the franchisee's business. Franchisees should also inquire about Crave Cookies's plans for developing non-traditional outlets in the area to better assess the potential competitive landscape.