Does the Crave franchise agreement specify that the survival of terms in Article 15 applies to both the franchisee and the Principals?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You and the Principals expressly agree that the terms of this Article 15 shallsurvive the termination, expiration or transfer of this Agreement or any interest herein.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Article 15's terms survive the termination, expiration, or transfer of the Franchise Agreement, applying to both the franchisee and their Principals. This means that even after the agreement ends, certain obligations and responsibilities outlined in Article 15 remain in effect for both parties.
For a prospective Crave franchisee, this implies that obligations such as indemnity provisions will continue even after the franchise agreement is no longer active. This could include ongoing liability for certain events that occurred during the term of the agreement.
The inclusion of the Principals ensures that these individuals, who are likely key stakeholders in the franchisee's business, are also bound by the surviving terms. This is a common practice in franchising to prevent individuals from circumventing post-termination obligations. Franchisees should carefully review Article 15 to understand the specific obligations that survive the termination of the agreement.