What are the consequences if a Crave franchisee fails to meet their obligations (Item 9) regarding the initial investment (Item 7)?

I am unable to provide specific details regarding the consequences a Crave franchisee might face for failing to meet their obligations regarding the initial investment. While the 2025 FDD includes an Item 23 receipt acknowledging that the franchisee has sufficient knowledge and experience in financial and business matters to make an informed investment decision, it does not explicitly state the repercussions for failing to meet the financial obligations detailed in Item 7.

Item 23 of the Crave FDD includes several addenda and acknowledgements related to legal compliance, franchisee responsibilities, and modifications to the standard franchise agreement. These cover topics such as ADA compliance, social media usage, and adherence to system standards. However, none of these sections directly address the financial consequences of failing to meet the initial investment requirements.

To fully understand the potential ramifications, prospective Crave franchisees should carefully review the Franchise Agreement and specifically ask the franchisor to clarify the actions Crave may take if a franchisee does not fulfill their initial investment obligations. This could include penalties, loss of the franchise, or other legal remedies. Seeking legal counsel to review the agreement is also advisable.