What is the consequence if the Crave franchisee fails to meet the Minimum Performance Schedule?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
for our costs and expenses, including, without limitation, reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding. If we are required to engage legal counsel in connection with any failure by you to comply with this Agreement, you shall reimburse us for any of the above-listed costs and expenses incurred by us.
SECTION 20 TIMELY PERFORMANCE
You hereby acknowledge that your timely development of the Franchised Businesses in the Development Area in accordance with the Minimum Performance Schedule is of material importance to us and you. You agree, as a condition of the continuance of the rights granted hereunder, to develop and open Franchised Businesses within the Development Area in accordance with the Minimum Performance Schedule, to operate such Franchised Businesses pursuant to the terms of the Franchise Agreements and to maintain all such Franchised Businesses in operation continuously. We agree to diligently act upon any request of or approval from you and any material delay in your ability to meet the Minimum Performance Schedule which is directly caused by our failure to act diligently upon a request for approval shall not constitute a default hereunder. Further, a failure or delay in performance by any party to this Agreement shall not be a default hereunder if such failure or delay arises out of or results from a Force Majeure, which for purposes of this Agreement shall be defined as fire, flood, earthquake or other natural disasters, or acts of a public enemy, war, rebellion or sabotage. Force Majeure shall not include your lack of financing.
SECTION 21 EFFECTIVE DATE
This Agreement shall be effective as of the date it is executed by us.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, timely development of franchised businesses in the Development Area according to the Minimum Performance Schedule is critical for both Crave and the franchisee. As a condition of maintaining the rights granted in the agreement, the franchisee must develop and open Franchised Businesses within the Development Area according to the Minimum Performance Schedule. They must also operate these businesses according to the Franchise Agreements' terms and maintain continuous operation.
However, Crave acknowledges certain exceptions. A delay caused by Crave's failure to act diligently on a request for approval from the franchisee will not constitute a default. Additionally, a failure or delay due to a Force Majeure event, such as natural disasters, war, or rebellion, will also not be considered a default. It is important to note that Force Majeure does not include a lack of financing on the franchisee's part.
If the franchisee fails to meet the Minimum Performance Schedule, Crave may engage legal counsel, and the franchisee will be responsible for reimbursing Crave for the costs and expenses incurred. Furthermore, upon termination or expiration of the agreement, Crave and its affiliates have the right to develop and operate, and to grant to others development rights and franchises to develop and operate, dedicated Crave outlets within the Development Area. This is subject to the territorial rights granted to the franchisee with respect to Franchised Businesses operated by them pursuant to the Franchise Agreements and subject, further, to the right of first refusal.