What are some examples of non-curable defaults that could lead to termination of the Crave Multi-Unit Development Agreement?
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 could lead to the termination of the Multi-Unit Development Agreement. These defaults, as outlined in Section 9 of the agreement, include failing to meet the minimum performance schedule, failing to comply with applicable laws, and if all of the franchisee's Crave businesses cease operations.
Additionally, an unauthorized transfer of the agreement, making a material misrepresentation to Crave, or a conviction by the franchisee or their owners of an indictable offense are also considered non-curable defaults. Bankruptcy or insolvency also constitute grounds for termination that cannot be cured.
Finally, the termination of a Franchise Agreement with Crave according to its terms also constitutes a non-curable default under the Multi-Unit Development Agreement due to a cross-default provision. These terms are important for a prospective franchisee to consider, as they represent situations where Crave can immediately terminate the agreement without an opportunity for the franchisee to correct the issue.