Under what conditions can Crave terminate the Franchise Agreement without an opportunity for the franchisee to cure the default?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
17.2 Notice of Termination – 30 Days to Cure
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.
17.3 Cross-Defaults, Non-Exclusive Remedies, etc.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, except for specific conditions outlined in Sections 17.1.2 and 17.1.3 of the Franchise Agreement, Crave can terminate the agreement if a franchisee defaults but is provided a 30-day written notice to cure the default. The franchisee can avoid termination by initiating a remedy to cure the default or making a good faith attempt to cure it within the 30-day period. If the default is not cured within this period, the agreement terminates immediately without further notice.
Examples of defaults that are susceptible to being cured include failing to comply with the requirements of the Franchise Agreement, failing to maintain standards or procedures prescribed by Crave, failing to obtain prior written approval or consent when required, or if any required license or permit is suspended.
This means that a Crave franchisee generally has an opportunity to correct most issues before the franchise is terminated, allowing them a chance to save their investment. However, it is crucial for prospective franchisees to understand the specific conditions listed in Sections 17.1.2 and 17.1.3, which are not detailed in this excerpt, as these outline situations where no cure period is offered, leading to immediate termination.