What constitutes a material event of default under Section 17.1.3(o) for a Crave franchise, related to the General Manager requirements?

According to Crave's 2025 Franchise Disclosure Document, a failure to materially comply with the requirements of Section 6.3 regarding the General Manager is considered a material event of default under Section 17.1.3(o) of the Franchise Agreement.

Specifically, Section 6.3 outlines several requirements for the General Manager. The General Manager must meet Crave's educational and business experience criteria as detailed in the Manual or in writing. They are required to devote their full time and best efforts to supervising and managing the Franchised Business. The General Manager must also be an individual acceptable to Crave and satisfy the training requirements outlined in Section 6.4.

If the General Manager is unable to continue serving in their capacity or no longer qualifies, the franchisee must notify Crave within seven days and designate a qualified replacement within thirty days. The replacement must meet the same qualifications, including completing all required training and obtaining necessary certifications. During the interim, the franchisee must ensure the Franchised Business is managed according to the terms of the Franchise Agreement. Failure to comply with these requirements can lead to a declaration of default under the agreement.