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, it states that the developer must stop selecting sites for Franchised Businesses and may not open any more Franchised Businesses.
This means that if the Multi-Unit Development Agreement is terminated or not renewed, the developer loses the right to further expand the Crave brand within the agreed-upon territory. They are immediately restricted from securing new locations or opening additional Crave restaurants.
This provision is fairly standard in multi-unit franchise agreements. It protects Crave's interests by preventing a terminated or non-renewed developer from continuing to expand the brand without the franchisor's consent and control. Prospective multi-unit developers should carefully consider the implications of this clause, especially regarding their long-term growth plans and investment strategies.