Under what circumstances, considered 'cause' and non-curable, can the Crave Multi-Unit Development Agreement be terminated?

According to Crave's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement can be terminated for cause if certain non-curable defaults occur. These defaults, as outlined in Section 9 of the agreement, include failing to meet the minimum performance schedule, failing to comply with applicable laws, and if all of the franchisee's Crave Franchised Businesses cease operations.

Additional non-curable causes for termination involve unauthorized transfer of the agreement, making a material misrepresentation to Crave, or a conviction by the franchisee or their owners of an indictable offense. Furthermore, the agreement can be terminated if the franchisee declares bankruptcy or becomes insolvent. A cross-default provision also exists, meaning that if a Franchise Agreement with Crave is terminated according to its terms, the Multi-Unit Development Agreement can also be terminated.

These termination conditions are significant for prospective multi-unit developers as they highlight the importance of meeting development schedules, maintaining legal compliance, and ensuring the ongoing operation of all Crave locations. The inclusion of conditions like bankruptcy, insolvency, and criminal convictions are standard protective measures for franchisors. The cross-default provision underscores the interconnectedness of all agreements between the franchisee and Crave, meaning a problem with one franchise location could jeopardize the entire multi-unit agreement.