What obligations does a Crave multi-unit developer have 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 site |
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 upon termination or non-renewal of their agreement. Specifically, the multi-unit developer must cease selecting new sites for Franchised Businesses. Furthermore, they are prohibited from opening any additional Franchised Businesses. This obligation is detailed within Section 10 of the Multi-Unit Development Agreement.
This stipulation is fairly standard in multi-unit franchise agreements. It prevents a developer, after the agreement ends, from continuing to expand the franchise network independently. This protects Crave's strategic growth plans and ensures consistent brand management.
Prospective multi-unit developers should carefully consider this restriction. They should evaluate their development timeline and ensure they can meet their obligations within the agreement's term. Failing to do so could result in the inability to further expand their Crave franchise presence, even if they have the resources and desire to do so.