What happens if a Crave franchisee fails to adhere to the Minimum Performance Schedule?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
for our costs and expenses, including, without limitation, reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding. If we are required to engage legal counsel in connection with any failure by you to comply with this Agreement, you shall reimburse us for any of the above-listed costs and expenses incurred by us.
SECTION 20 TIMELY PERFORMANCE
You hereby acknowledge that your timely development of the Franchised Businesses in the Development Area in accordance with the Minimum Performance Schedule is of material importance to us and you. You agree, as a condition of the continuance of the rights granted hereunder, to develop and open Franchised Businesses within the Development Area in accordance with the Minimum Performance Schedule, to operate such Franchised Businesses pursuant to the terms of the Franchise Agreements and to maintain all such Franchised Businesses in operation continuously. We agree to diligently act upon any request of or approval from you and any material delay in your ability to meet the Minimum Performance Schedule which is directly caused by our failure to act diligently upon a request for approval shall not constitute a default hereunder.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, timely development of franchised businesses in the Development Area according to the Minimum Performance Schedule is crucial for both Crave and the franchisee. As a condition of maintaining the rights granted in the agreement, the franchisee must develop and open franchised businesses within the Development Area according to the Minimum Performance Schedule, operate them under the terms of the Franchise Agreements, and maintain continuous operation.
However, Crave acknowledges certain exceptions. Delays caused directly by Crave's failure to act diligently on a franchisee's request for approval will not constitute a default. Additionally, failures or delays resulting from a Force Majeure event, such as natural disasters or war, will also not be considered a default. It is important to note that Force Majeure does not include a lack of financing on the franchisee's part.
Furthermore, if Crave incurs legal costs due to the franchisee's failure to comply with the agreement, the franchisee is responsible for reimbursing Crave for those costs. This highlights the importance of adhering to the Minimum Performance Schedule and all other terms of the agreement to avoid potential financial liabilities and maintain a positive relationship with Crave.