Can Crave, as a third-party beneficiary, enforce the agreement against me?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Company is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Company and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisee and/or the Company may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisee and the Company all the costs it/they incur(s), including, without limitation, legal fees and expenses, if this Agreement is enforced against me. Due to the importance of this Agreement to the Franchisee and the Company, any claim I have against the Franchisee or the Company is a separate matter and does not entitle me to violate or justify any violation of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave is a third-party beneficiary of the Franchise Agreement and has the right to enforce it against the franchisee. This means that Crave has specific rights under the agreement, even though they are not the direct franchisee.
The FDD states that if a franchisee violates the agreement, it will cause irreparable harm to both Crave and the franchisee. Consequently, both Crave and the franchisee can seek an injunction to prevent the franchisee from violating the agreement. Furthermore, the franchisee is responsible for covering all costs, including legal fees and expenses, incurred by Crave and/or the franchisee if the agreement is enforced against them.
This clause emphasizes the importance of adhering to the Franchise Agreement. Any claims a franchisee may have against Crave or the franchisee do not justify violating the agreement. This provision ensures that Crave can protect its brand standards, operational procedures, and overall system integrity, as a violation could negatively impact the entire franchise network.