What is the purpose of the Minimum Performance Schedule for Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
in connection with the System (hereinafter referred to as "Marks" or "Proprietary Marks");
WHEREAS, we and our affiliate continue to develop, use and control the use of such Marks in order to identify for the public the source of services and products marketed thereunder and under the System, and to represent the System's high standards of quality, appearance and service; and
WHEREAS, you wish to obtain certain development rights to open and operate Franchised Businesses operating under the Marks and the System within the Development Area described in this Agreement.
NOW, THEREFORE, the parties, in consideration of the undertakings and commitments of each party to the other party stated herein, hereby agree as follows:
SECTION 1 GRANT
1.1 We hereby grant to you, pursuant to the terms and conditions of this Agreement, certain development rights ("Development Rights") to establish and operate the number of Franchised Businesses granted in the Minimum Performance Schedule (defined below), and to use the Marks and System solely in connection therewith, at specific locations to be designated in separate Franchise Agreements executed as provided in Section 3.1 hereof, and pursuant to the schedule established in Attachment 1 of this Agreement (hereinafter "Minimum Performance Schedule"). Each Franchised Business developed
hereunder shall be located in the area described in Attachment 2 of this Agreement (hereinafter "Development Area"). The Minimum Performance Schedule shall be deemed completed, and this Agreement shall expire, upon the opening of the Franchised Business to be developed hereunder.
- 1.2 Each Franchised Business for which a Development Right is granted hereunder shall be established and operated pursuant to a Franchise Agreement to be entered into between you and us in accordance with Section 3.1 hereof.
- 1.3 Except as otherwise provided in this Agreement, we shall not establish, nor franchise anyone other than you to establish, a dedicated Crave outlet in the Development Area during the term of this Agreement, provided you are not in default hereunder.
- 1.4 This Agreement is not a Franchise Agreement and does not grant to you any right to use the Marks or System.
- 1.5 You shall have no right under this Agreement to franchise others under the Marks or System.
SECTION 2 DEVELOPMENT FEE; INITIAL FRANCHISE FEES
- 2.1 In consideration of the Development Rights granted herein, you shall pay to us a development fee of ___________________________ Thousand Dollars ($____________), payable upon execution of this Agreement ("Development Fee"). The Development Fee is calculated as one hundred percent (100%) of the initial franchise fee for the first Franchised Business to be developed hereunder, plus a deposit equal to fifty percent (50%) of the initial franchise fee for each additional Franchised Business to be developed hereunder.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Minimum Performance Schedule outlines the development obligations for multi-unit developers. Crave grants development rights to establish and operate a certain number of franchised businesses within a specific area, and the Minimum Performance Schedule, detailed in Attachment 1 of the Multi-Unit Development Agreement, sets the timeline and number of Crave outlets the developer is expected to open. The agreement expires once the schedule is completed upon the opening of the final franchised business.
For a prospective multi-unit Crave developer, this schedule is a critical component of the agreement. It legally binds the developer to a specific pace of expansion. Failing to meet the milestones in the Minimum Performance Schedule could result in a breach of contract, potentially leading to the loss of development rights.
Crave emphasizes the importance of timely development, stating that it is a condition for the continuation of the rights granted under the agreement. However, Crave also acknowledges that delays can occur due to circumstances beyond the developer's control, such as natural disasters or acts of war (referred to as "Force Majeure"), or delays caused by Crave itself. It is important to note that lack of financing is specifically excluded from the definition of Force Majeure.
This type of development schedule is a common practice in multi-unit franchising, ensuring that developers are committed to expanding the brand's presence within their designated territory. Prospective developers should carefully review the Minimum Performance Schedule, assess their ability to meet the required milestones, and understand the potential consequences of failing to do so.