What are some examples of non-curable defaults that Crave defines as 'cause' for termination?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi Unit Development Agreement | Summary | |
|---|---|---|---|
| h. | "Cause" defined – non curable defaults | 9 | Failure to meet your minimum performance schedule; failure to comply with applicable laws; if all of your Franchised Businesses stop operating; unauthorized transfer; you make a material misrepresentation to us; conviction by you or your owners of an indictable offense; bankruptcy or insolvency; if a Franchise Agreement with us is terminated according to its terms (this is a cross-default provision) |
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 specific non-curable defaults that can lead to the termination of a Multi-Unit Development Agreement. These defaults, which do not offer an opportunity for the franchisee to correct the issue, include failing to meet the minimum performance schedule outlined in the agreement. This means Crave expects franchisees to adhere strictly to the development timeline.
Other non-curable defaults outlined by Crave include failing to comply with applicable laws, which places a significant responsibility on the franchisee to stay informed and compliant with all legal requirements. If all of the franchisee's Crave businesses cease operations, this also constitutes a non-curable default. Furthermore, an unauthorized transfer of the agreement, making a material misrepresentation to Crave, or a conviction of an indictable offense by the franchisee or their owners are also considered non-curable defaults.
Additionally, Crave lists bankruptcy or insolvency as a non-curable default, indicating the importance of maintaining financial stability. Finally, if a Franchise Agreement with Crave is terminated according to its terms, this triggers a cross-default provision, leading to the termination of the Multi-Unit Development Agreement as well. These terms highlight the critical nature of compliance and operational performance in maintaining a Crave franchise.