What actions must a Crave franchisee take to avoid termination after receiving a notice of default?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in Sections 17.1.2 and 17.1.3 of this Agreement, upon any default by you which is susceptible of being cured, we may terminate this Agreement by giving written notice of termination stating the nature of such default to you at least thirty (30) days prior to the effective date of termination. However, you may avoid termination by immediately initiating a remedy to cure such default and curing it
to our reasonable or making a bona fide attempt to cure to our reasonable satisfaction within the thirty (30) day period and by promptly providing proof thereof to us. If any such default is not cured within the specified time, or such longer period as applicable law may require, this Agreement shall terminate without further notice to you effective immediately upon the expiration of the thirty (30) day period or such longer period as applicable law may require. Defaults which are susceptible of cure hereunder may include, but are not limited to, the following illustrative events:
- 17.2.1 If you fail to comply with any of the requirements imposed by this Agreement, as it may from time to time be amended or reasonably be supplemented by us, or fail to carry out the terms of this Agreement in good faith.
- 17.2.2 If you fail to maintain or observe any of the standards, specifications or procedures prescribed by us in this Agreement or otherwise in writing.
- 17.2.3 If you fail, refuse, or neglect to obtain our prior written approval or consent as required by this Agreement.
- 17.2.4 If any license or permit you are required to maintain for the operation of the Franchised Business is suspended.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee receives a written notice of termination for a curable default, they can avoid termination by taking specific actions within a 30-day period. The franchisee must immediately begin to remedy the default and continue to make a genuine effort to fully resolve the issue to Crave's reasonable satisfaction. Additionally, the franchisee must promptly provide proof of their efforts to Crave.
Examples of defaults that can be cured include failing to comply with the franchise agreement, not maintaining the standards and procedures set by Crave, neglecting to obtain required written approval, or having a necessary license or permit suspended. If the franchisee does not cure the default within the 30-day period, or any longer period required by applicable law, the franchise agreement will terminate immediately without further notice.
This means a Crave franchisee needs to act quickly and decisively upon receiving a default notice. They should document all steps taken to correct the issue and maintain clear communication with Crave to demonstrate their commitment to resolving the default. Understanding what constitutes a curable default and the required response is crucial for maintaining the franchise agreement.