Under what condition can Crave terminate the Franchise Agreement if the replacement General Manager cannot complete the initial training program?

According to Crave's 2025 Franchise Disclosure Document, Crave has the right to terminate the Franchise Agreement if a replacement General Manager is unable to satisfactorily complete the initial training program. This means that if the franchisee's first General Manager does not pass the training, and a subsequent replacement also fails to complete the training to Crave's standards, Crave can terminate the franchise agreement.

This condition highlights the importance Crave places on proper training and management for its franchise locations. It also places the onus on the franchisee to ensure their General Manager is capable of meeting Crave's training requirements. The franchisee is responsible for covering all expenses associated with the General Manager's training, including the initial training fee, travel, lodging, meals, and wages.

This termination clause serves as a protective measure for Crave, ensuring that all franchise locations are managed by individuals who meet their standards. For a prospective franchisee, this underscores the need to carefully vet and select a qualified General Manager who is likely to succeed in the training program. Failure to do so could result in the loss of the franchise.

Furthermore, the FDD states that any subsequently designated manager must also complete the initial training program to Crave's satisfaction. This requirement applies even if it necessitates sending the manager to Crave's headquarters for training, at the franchisee's expense. Crave also retains the right to charge a reasonable fee for the initial training provided to replacement or successor employees if the franchisee is not approved to provide the training themselves.