What section of the Crave Multi Unit Development Agreement outlines the multi-unit developer's obligations upon termination or non-renewal?
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, Section 10 of the Multi-Unit Development Agreement outlines the multi-unit developer's obligations upon termination or non-renewal. Specifically, upon termination or non-renewal, the multi-unit developer must stop selecting sites for Franchised Businesses. Additionally, the developer is prohibited from opening any more Franchised Businesses.
This provision is important for prospective Crave multi-unit developers because it clearly defines the limitations placed on them should the development agreement end, whether through termination or non-renewal. It prevents further investment in new locations once the agreement is no longer in effect.
This is a fairly standard clause in multi-unit development agreements, as franchisors typically want to regain control over development rights in a specific area if the developer is no longer authorized to expand the brand. Prospective franchisees should carefully consider this section to understand the full scope of their obligations and restrictions upon the conclusion of the development agreement.