What are the Crave multi-unit developer's obligations regarding site selection and opening new Franchised Businesses 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 and the opening of new franchised businesses upon the termination or non-renewal of their Multi-Unit Development Agreement. Specifically, the multi-unit developer must cease selecting new sites for Crave Franchised Businesses. Furthermore, they are prohibited from opening any additional Crave Franchised Businesses.
This stipulation is important for prospective multi-unit developers to understand, as it directly impacts their ability to expand their network of Crave franchises after the agreement's termination or non-renewal. It essentially freezes their development activities, preventing them from further building their business under the Crave brand. This obligation is detailed in Section 10 of the Multi-Unit Development Agreement.
This restriction is a standard practice in franchising, designed to protect the integrity of the Crave brand and prevent potential conflicts that could arise if a former developer were to continue expanding independently after the agreement ends. Multi-unit developers should carefully consider this provision and its potential impact on their long-term business plans and exit strategies when evaluating the Crave franchise opportunity.