Under what conditions can Crave terminate the franchise agreement if a default is susceptible to being cured?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in Sections 17.1.2 and 17.1.3 of this Agreement, upon any default by you which is susceptible of being cured, we may terminate this Agreement by giving written notice of termination stating the nature of such default to you at least thirty (30) days prior to the effective date of termination. However, you may avoid termination by immediately initiating a remedy to cure such default and curing it
to our reasonable or making a bona fide attempt to cure to our reasonable satisfaction within the thirty (30) day period and by promptly providing proof thereof to us. If any such default is not cured within the specified time, or such longer period as applicable law may require, this Agreement shall terminate without further notice to you effective immediately upon the expiration of the thirty (30) day period or such longer period as applicable law may require. Defaults which are susceptible of cure hereunder may include, but are not limited to, the following illustrative events:
- 17.2.1 If you fail to comply with any of the requirements imposed by this Agreement, as it may from time to time be amended or reasonably be supplemented by us, or fail to carry out the terms of this Agreement in good faith.
- 17.2.2 If you fail to maintain or observe any of the standards, specifications or procedures prescribed by us in this Agreement or otherwise in writing.
- 17.2.3 If you fail, refuse, or neglect to obtain our prior written approval or consent as required by this Agreement.
- 17.2.4 If any license or permit you are required to maintain for the operation of the Franchised Business is suspended.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave may terminate the franchise agreement if a franchisee commits a curable default. Crave must provide written notice of termination at least thirty (30) days prior to the termination date, specifying the nature of the default.
A franchisee can avoid termination by immediately starting to fix the default and successfully curing it to Crave's reasonable satisfaction within the 30-day period. The franchisee must also promptly provide proof of the cure to Crave.
If the default is not cured within the 30-day period, or any longer period required by applicable law, the franchise agreement will terminate immediately upon the expiration of that period without further notice. Examples of defaults that are susceptible to being cured include failing to comply with the franchise agreement, failing to maintain standards or procedures, failing to obtain required written approval, or suspension of a required license or permit.