What are some examples of curable defaults that Crave defines as 'cause' for termination?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
tions under the Franchise Agreement is a material and essential obligation, the breach of which may result in termination. | | g. | "Cause" defined – curable defaults | Sections 17.1.3 and 17.2 | We may terminate you for cause if you fail to cure certain defaults, including: suspension of your beer and wine license; if you or any of your affiliates fail to pay any monies owed to us, or our affiliates or vendors, and do not cure within five days after notice (or longer period required); fail to obtain signed copies of the confidentiality and non-competition covenants contained in the Franchise Agreement within five days after a request; fail to obtain and maintain required insurance within seven days after notice; fail to cure a failed quality assurance audit within 15 days after notice; suspension of required license or permit; use the Marks in an unauthorized manner and fail to cure within 24 hours after notice; fail to maintain quality standards; fail to cure any other default that is susceptible of cure within 30 days after notice | | h. | "Cause" defined – non curable defaults | Sections 17.1.2 and 17.1.3 | We may terminate you for cause if you fail to cure certain defaults, including: loss of your beer and wine license, if you become insolvent, make a general assignment for benefit of creditors, file a petition or have a petition initiated against you under federal bankruptcy laws, have outstanding judgments against you for over 30 days, sell unauthorized | | | Provision | Section in Franchise Agreement | Summary | |----|--------------------------------------------------------|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 50–56)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, there are several curable defaults that could lead to the termination of a franchise agreement. If a franchisee fails to cure these defaults within the specified time frame, Crave has grounds to terminate the agreement for cause. These curable defaults apply to both single-unit franchise agreements and multi-unit development agreements.
For a standard franchise agreement, curable defaults include suspension of the franchisee's beer and wine license, failure to pay monies owed to Crave, its affiliates, or vendors (with a five-day cure period after notice), failure to obtain signed confidentiality and non-competition covenants within five days of request, failure to maintain required insurance within seven days after notice, failure to cure a failed quality assurance audit within 15 days after notice, suspension of a required license or permit, unauthorized use of Crave's marks if not cured within 24 hours after notice, failure to maintain quality standards, and failure to cure any other default that is susceptible of cure within 30 days after notice.
For multi-unit developers, curable defaults include using Crave's marks or system without consent, participating in a competing business, failing to pay money to Crave when due, beginning development of a franchised business before meeting pre-development obligations, failing to obtain Crave's consent when required, and opening or operating a franchised business before a franchise agreement has been signed. These provisions highlight the importance of franchisees adhering to the terms of the franchise agreement and maintaining open communication with Crave to address any potential issues promptly. Franchisees should carefully review these sections of the FDD and the franchise agreement to fully understand their obligations and the potential consequences of failing to meet them.