Under what conditions will Crave negotiate another Multi-Unit Development Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 6 | Length of the Minimum Performance Schedule |
| b. | Renewal or extension of the term | 5 | After all Franchised Businesses have been developed, we will negotiate in good faith another Multi-Unit Development Agreement. |
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, after a multi-unit developer has completed the development of all Franchised Businesses outlined in their current agreement, Crave will negotiate in good faith another Multi-Unit Development Agreement. This suggests that Crave is open to continued partnerships with successful multi-unit developers.
For a prospective franchisee, this presents an opportunity for long-term growth with Crave. If the franchisee successfully develops all the units in their initial agreement, they can potentially expand their operations further through a new agreement. This can lead to increased revenue and market presence for the franchisee.
However, the FDD states that Crave will negotiate 'in good faith,' which does not guarantee a new agreement. The terms of any new agreement would be subject to negotiation, and Crave may have the right to refuse a new agreement if it is not in their best interest. A prospective franchisee should inquire about the specific criteria and conditions that Crave considers when deciding whether to enter into a new Multi-Unit Development Agreement.