What article in the Crave franchise agreement discusses agreements, representations, warranties, and covenants?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 6 YOUR AGREEMENTS, REPRESENTATIONS, WARRANTIES AND COVENANTS
6.1 Best Efforts
You covenant and agree that you shall make all commercially reasonable efforts to operate the Franchised Business so as to achieve optimum sales.
6.2 Representations of Corporate Entity
If you are a corporation, limited liability company, or partnership, you and the Principals represent, warrant and covenant that:
6.2.1 You are duly organized and validly existing under the state law of your formation;
6.2.2 You and the Principals are duly qualified and are authorized to do business in each jurisdiction in which your business activities or the nature of the properties owned by you require such qualification;
6.2.3 Your corporate charter, operating agreement, or written partnership agreement shall at all times provide that your activities are confined exclusively to the operation of the Franchised Business, unless otherwise consented to in writing by us;
6.2.4 The execution of this Agreement and the consummation of the transactions contemplated hereby are within your corporate power, if you are a corporation, or if you are a limited liability company, permitted under your operating agreement, or if you are a partnership, permitted under your written partnership agreement and have been duly authorized by you;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Article 6 of the franchise agreement outlines the franchisee's agreements, representations, warranties, and covenants. Specifically, section 6.1 requires the franchisee to use commercially reasonable efforts to optimize sales at the franchised business. If the franchisee is a corporation, LLC, or partnership, section 6.2 stipulates that the franchisee must be duly organized, authorized to conduct business in relevant jurisdictions, and restrict its activities primarily to operating the Crave franchise unless Crave provides written consent otherwise. Furthermore, the execution of the franchise agreement must be within the franchisee's corporate or partnership powers and duly authorized.
This section of the Crave franchise agreement is important because it sets out the fundamental promises and assurances that the franchisee makes to Crave. These provisions ensure that the franchisee is legally and financially capable of fulfilling their obligations under the agreement. The requirement to focus business activities primarily on the Crave franchise helps to maintain brand consistency and prevent conflicts of interest.
Prospective franchisees should carefully review Article 6 to fully understand their commitments to Crave. They should also consult with legal and financial advisors to assess the implications of these representations, warranties, and covenants. Ensuring compliance with these provisions is crucial for maintaining a good relationship with Crave and avoiding potential breaches of the franchise agreement.