What is considered a material default under the Crave franchise agreement regarding equipment, lines, and communication methods?

According to Crave's 2025 Franchise Disclosure Document, it is considered a material default if a franchisee fails to maintain the required equipment, telecommunications lines, and communication methods in operation and accessible to Crave at all times during the term of the franchise agreement.

Crave requires franchisees to install and maintain specific equipment and a telecommunications line to allow Crave to access and retrieve information from the point-of-sale system or other required computer hardware and software. This enables Crave to electronically inspect and monitor information about the franchised business, including gross sales and other data stored in the equipment and software. Franchisees must also maintain high-speed internet access or other electronic communication methods as specified by Crave.

This requirement ensures that Crave can continuously monitor the performance and operations of its franchises, which is crucial for maintaining brand standards and providing support. The franchisee's failure to keep these systems operational and accessible gives Crave grounds to declare a material default, which could lead to further actions, including termination of the franchise agreement.