Under what circumstances, as defined in the Crave Multi-Unit Development Agreement, would a non-curable default 'for cause' occur?
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) |
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, there are several circumstances that would constitute a non-curable default 'for cause' under the Multi-Unit Development Agreement. These defaults, as outlined in Section 9 of the agreement, do not offer an opportunity for the developer to remedy the situation, leading to immediate termination.
Specifically, a non-curable default will occur if the multi-unit developer fails to meet the minimum performance schedule outlined in the agreement, indicating a failure to develop the agreed-upon number of franchise locations within the specified timeframe. Further, any failure to comply with applicable laws is also grounds for a non-curable default. If all of the developer's Crave Franchised Businesses cease operations, this also constitutes a non-curable default.
Other non-curable defaults include an unauthorized transfer of the development agreement, making a material misrepresentation to Crave, or a conviction by the developer or their owners of an indictable offense. Finally, bankruptcy or insolvency, or the termination of a Franchise Agreement with Crave according to its terms (cross-default provision), also constitute non-curable defaults under the Multi-Unit Development Agreement.