If the Crave franchise agreement is constructively amended due to applicable law, does this constitute a concession by Crave that the grounds for termination in the agreement do not constitute 'good cause'?

According to the 2025 Crave Franchise Disclosure Document, specifically the addendum required by the Commonwealth of Virginia, the franchise agreement may be constructively amended due to applicable law. If any grounds for default or termination stated in the franchise agreement and development agreement do not constitute "reasonable cause," as defined by the Virginia Retail Franchising Act or the laws of Virginia, the provision may not be enforceable.

This amendment does not mean that Crave concedes that the grounds for termination in the agreement do not constitute 'good cause'. Instead, it acknowledges that the laws of Virginia may impose a higher standard (i.e., "reasonable cause") for termination than what is stated in the franchise agreement. This ensures that the franchise agreement complies with Virginia law.

For a prospective Crave franchisee in Virginia, this addendum provides an additional layer of protection. It means that Crave cannot terminate the franchise agreement based on reasons that do not meet the legal standard of "reasonable cause" under Virginia law. This could be a significant benefit, as it prevents termination for arbitrary or unfair reasons, providing more security for the franchisee's investment and business operation.