Under what circumstances does Crave reserve the right not to enter into a successor franchise agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise agreement for your franchise as a result of a decision to withdraw from a marketing area or the Designated Territory in which your Franchised Business is located.
3.3 Refusal to Grant Successor Term
We can refuse to grant a successor term for your franchise if your lease, sublease or other document by which you have the right to occupy the Accepted Location is not extended to cover the period of the successor term before your successor term is to take effect or if you do not have a written commitment from your landlord to renew the lease or sublease for a period at least equal to the successor term. We may also refuse to grant you a successor term for your franchise under other circumstances, including, but not limited to, your failure to substantially comply with the terms of this Agreement, your failure to pay amounts owed to us or our affiliates when due, or your failure to cure of any defaults incurred during the Initial Term, if applicable.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave may refuse to grant a successor term for a franchise under several circumstances. These include situations where the franchisee's lease or sublease for the location cannot be extended to cover the successor term, or if the franchisee does not have a written commitment from the landlord to renew the lease or sublease for a period at least equal to the successor term.
Additionally, Crave may refuse a successor term if the franchisee fails to substantially comply with the terms of the existing Franchise Agreement, fails to pay amounts owed to Crave or its affiliates when due, or fails to cure any defaults incurred during the initial term. These stipulations ensure that franchisees maintain good standing and uphold their contractual obligations to be eligible for renewal.
Crave also reserves the right not to enter into a successor franchise agreement if it decides to withdraw from the marketing area or the designated territory in which the franchised business is located. This clause protects Crave's strategic business decisions regarding market presence and territorial organization. Prospective franchisees should be aware of these conditions, as they directly impact the possibility of renewing their franchise agreement and continuing operations under the Crave brand beyond the initial term.