What documents are Crave franchisees required to execute for the successor term?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
erm, in substantial compliance, and at the expiration of such Initial Term are in full compliance, with this Agreement, your lease or sublease and all other agreements between you and us or companies or persons associated or affiliated with us.
- 3.2.2 We shall, within six (6) months before the expiration of the Initial Term, provide you with any documents that you are required to execute for the successor term, which documents may include, but are not limited to, a general release, our then-current Franchise Agreement and all other ancillary agreements, instruments and documents then customarily used by us in the granting of business franchises (all of which will contain terms and fees substantially the same as those included in Franchise Agreements being executed at the time the successor term commences, and which will not obligate you to pay a further initial franchise fee, but will require payment of a successor agreement fee equal to Five Thousand Dollars ($5,000)) (the "Successor Franchise Documents").
- 3.2.3 You shall execute the Successor Franchise Documents and all other documents and instruments that we require in order to enter into a successor Franchise Agreement. You shall return the executed Successor Franchise Documents to us, together with payment of our then-current successor agreement fee, by no later than the expiration date of the Initial Term. If we do not receive the executed documents and successor agreement fee by such expiration date, then this Agreement shall expire, you shall have no further rights under this Agreement, and you shall comply with the provisions of Article 18 and any other provisions that survive termination or expiration of this Agreement.
- 3.2.4 After we have received from you all executed Successor Franchise Documents and the successor agreement fee, we shall inspect your Franchised Business to determine the extent of any required updating, remodeling, redecorating or other refurbishment for the Franchised Business in order to bring the Franchised Business up to our then-current image and standards for new Crave outlets. We will provide notice to you of the modifications you shall be required to make, and you shall have six (6) months from the date of such notice to effectuate such modifications. If you fail or refuse to make the required modifications, we shall have the right to terminate the Successor Franchise Documents.
- 3.2.5 Notwithstanding anything he
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee wants to renew their franchise agreement for a successor term, they will be required to execute certain documents. Crave will provide these documents to the franchisee within six months before the expiration of the initial term.
The documents may include a general release, Crave's then-current Franchise Agreement, and all other ancillary agreements, instruments, and documents that Crave customarily uses when granting business franchises at that time. These documents will have terms and fees substantially similar to those in new Franchise Agreements, but the franchisee will not have to pay another initial franchise fee. However, the franchisee will be required to pay a successor agreement fee of $5,000.
The franchisee must return the executed successor franchise documents and pay the successor agreement fee by the expiration date of the initial term. If Crave does not receive these items by the deadline, the agreement will expire, and the franchisee will lose their rights under the agreement. After Crave receives the documents and fee, they will inspect the franchised business to determine if any updates, remodeling, redecoration, or refurbishment is needed to meet Crave's current image and standards for new outlets. The franchisee will then have six months to complete these modifications, or Crave has the right to terminate the successor franchise documents.
It is important to note that Crave reserves the right not to enter into a successor franchise agreement if they decide to withdraw from the marketing area or designated territory where the franchised business is located. Therefore, even if a franchisee meets all other requirements, renewal is not guaranteed.