What is the consequence if a Crave franchisee materially breaches covenants or makes false representations as described in Article 6?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (n) If you breach in any material respect any of the covenants in any material respect set forth in Article 6 or have falsely made any of the representations or warranties set forth in Article 6;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee materially breaches any of the covenants in Article 6 or makes false representations or warranties as described in Article 6, it constitutes an event of default that can lead to termination of the franchise agreement.
This means that Crave has the right to terminate the franchise agreement if the franchisee fails to comply with the terms and conditions outlined in Article 6, or if the franchisee provides false information related to those terms. Article 6 likely covers important aspects of the franchise operation, and any significant violation can have serious consequences.
For a prospective Crave franchisee, this highlights the importance of fully understanding and adhering to all covenants and representations outlined in Article 6 of the franchise agreement. It also emphasizes the need for honesty and accuracy in all dealings with the franchisor, as any misrepresentation can be grounds for termination. Franchisees should seek legal counsel to fully understand their obligations and the potential ramifications of non-compliance.