On what grounds can a Crave multi-unit developer terminate the Multi Unit Development Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 6 | Length of the Minimum Performance Schedule |
| b. | Renewal or extension of the term | 5 | After all Franchised Businesses have been developed, we will negotiate in good faith another Multi-Unit Development Agreement. |
| c. | Requirements for multi unit developer to renew or extend | Not applicable | Not applicable |
| d. | Termination by multi-unit developer | Not applicable | You may seek to terminate on any grounds available to you at law. |
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, a multi-unit developer can terminate the Multi-Unit Development Agreement based on any grounds available to them at law. This means the developer's ability to terminate the agreement is not explicitly defined or limited within the franchise agreement itself, but rather is governed by the legal rights afforded to them under applicable state and federal laws.
This provision offers a degree of flexibility for the multi-unit developer, as it allows them to pursue termination based on a potentially wide range of legal arguments. However, it also introduces uncertainty, as the specific grounds for termination will depend on the laws of the jurisdiction governing the agreement and the specific facts and circumstances of the situation.
Prospective Crave multi-unit developers should consult with legal counsel to fully understand their rights and obligations under the Multi-Unit Development Agreement, including the potential grounds for termination available to them under applicable law. This is particularly important given that the agreement does not explicitly define the circumstances under which the developer can terminate the agreement, leaving it open to interpretation and legal challenges.