What is a Crave multi-unit developer obligated to do regarding site selection upon termination or non-renewal of the Multi Unit Development Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi Unit Development Agreement | Summary | |
|---|---|---|---|
| h. | "Cause" defined – non curable defaults | 9 | Failure to meet your minimum performance schedule; failure to comply with applicable laws; if all of your Franchised Businesses stop operating; unauthorized transfer; you make a material misrepresentation to us; conviction by you or your owners of an indictable offense; bankruptcy or insolvency; if a Franchise Agreement with us is terminated according to its terms (this is a cross-default provision) |
| i. | Multi-unit developer's obligations on termination/ non-renewal | 10 | You must stop selecting sites for Franchised Businesses, and you may not open any more Franchised Businesses |
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 faces specific obligations regarding site selection upon termination or non-renewal of their agreement. Specifically, the multi-unit developer must cease selecting new sites for Crave Franchised Businesses.
This stipulation prevents the developer from securing further locations under the Crave brand after the agreement ends. It ensures that the developer cannot continue to expand the Crave network independently once the contractual relationship has concluded.
Additionally, the multi-unit developer is prohibited from opening any more Crave Franchised Businesses. This restriction ensures that the developer cannot capitalize on previously secured locations or continue operations under the Crave brand without authorization after the termination or non-renewal of the agreement. This is a standard practice in franchising to protect the brand and prevent unauthorized expansion.