For Crave franchises, does the definition of 'Termination' include the natural expiration of the Franchise Agreement?

According to Crave's 2025 Franchise Disclosure Document, the definition of "Termination" includes the natural expiration of the Franchise Agreement. The document specifies that termination encompasses voluntary termination, involuntary termination, or natural expiration. This means that when the initial term of the Crave franchise agreement concludes, it is considered a form of termination, regardless of whether either party actively ends the agreement.

For a prospective Crave franchisee, this definition is important because it triggers certain obligations and rights outlined in the Franchise Agreement. Upon expiration, the franchisee may need to transfer interests in websites, social media accounts, and telephone listings back to Crave. Additionally, the franchisor's obligations regarding the franchisee's exclusive development area also change upon expiration, allowing Crave and its affiliates to develop or grant franchises to others in that area.

Furthermore, the franchisee's ability to renew the agreement depends on their compliance with the agreement's terms throughout the initial term and at the time of expiration. To obtain a successor term, the franchisee must execute new franchise documents, which may include a general release and the then-current Franchise Agreement, and pay a successor agreement fee of $5,000. Failure to meet these conditions by the expiration date results in the termination of the agreement, and the franchisee must adhere to the provisions that survive termination or expiration.