What is the consequence if the Franchisee or Franchisee's Principal(s) breaches any promises made in the Crave General Release?

According to Crave's 2025 Franchise Disclosure Document, if a franchisee or their principal breaches any promises, covenants, or undertakings made in the General Release through any act or omission, they will be required to indemnify the Released Franchisor Party. This indemnification covers all costs and expenses incurred by the Released Franchisor Party as a result of the breach.

In practical terms, this means that if a Crave franchisee or their principal violates any aspect of the General Release, they will be financially responsible for any losses, damages, or expenses that Crave or related parties incur as a result. This includes, but is not limited to, reasonable attorneys' fees and court costs associated with defending against any claims arising from the franchisee's breach.

This provision serves to protect Crave from potential liabilities and ensures that franchisees and their principals are held accountable for upholding their commitments under the General Release. Franchisees should carefully review the terms of the General Release and ensure they fully understand their obligations to avoid potential financial repercussions. This is a fairly standard clause in franchise agreements, intended to protect the franchisor from legal and financial harm due to franchisee actions.