What happens if a Crave franchisee fails to materially comply with the requirements regarding the General Manager?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Any failure to materially comply with the requirements of this Section 6.3 shall be deemed a material event of default under Section 17.1.3(o) hereof.
6.4 Training
You agree that it is necessary to the continued operation of the System and the Franchised Business that your personnel receive such training as we may reasonably require, and accordingly agree as follows:
6.4.1 (a) Not later than thirty (30) days prior to the scheduled opening of the Franchised Business, two (2) trainees shall have completed, to our reasonable satisfaction, our initial training program, including classroom training and training in an operating Franchised Business at such location(s) as may be designated by us. Your trainees must include you or your General Manager. If you
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, failing to materially comply with the requirements for the General Manager constitutes a significant breach of the franchise agreement. Specifically, if a Crave franchisee does not propose a qualified replacement or successor General Manager within the required timeframe after receiving a ten-day written notice, it is considered a material event of default.
The General Manager's role is crucial for the daily operation and management of the Crave franchise. The General Manager must meet specific qualifications, including educational and business experience criteria, full-time dedication to the business, acceptability to Crave, and completion of required training. If the General Manager is unable to continue in their role or no longer qualifies, the franchisee must notify Crave within seven days and designate a qualified replacement within thirty days.
This default can lead to the termination of the franchise agreement, as detailed in Section 17.1.3(o). This highlights the importance of maintaining a qualified and approved General Manager to avoid potential disruptions and ensure compliance with Crave's standards. Prospective franchisees should carefully review the requirements for General Managers and the implications of failing to meet those requirements to fully understand their obligations and the potential consequences of non-compliance.