Under the Crave Multi-Unit Development Agreement, what is the obligation of the Multi-Unit Developer regarding establishing and operating Crave outlets?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
( The Agreement authorizes and obliges Multi-Unit Developer ) "Crave" outlets to establish and operate pursuant to a Franchise Agreement for each Franchised Business. The following is Multi-Unit Developer's Minimum Performance Schedule: Minimum Cumulative Number By this Date of Franchise Agreements for Franchised Businesses to be located and Operating within the Development Area Total: upon the opening of the final Franchised Business The Minimum Performance Schedule shall be deemed completed, and this Agreement shall expire, to be developed pursuant to this Agreement. APPROVED: MULTI-UNIT DEVELOPER: CRAVE FRANCHISING, LLC Samantha Rincione CEO and COO
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement authorizes and obligates the Multi-Unit Developer to establish and operate Crave outlets. This is done under the terms of a Franchise Agreement for each franchised business. The Multi-Unit Developer must adhere to a Minimum Performance Schedule, which outlines the required number of franchise agreements for franchised businesses to be located and operating within the designated Development Area. The agreement expires once the final franchised business is opened according to the schedule.
This means a Multi-Unit Developer commits to opening a specific number of Crave locations within a defined territory and timeframe. This commitment is formalized through individual Franchise Agreements for each location, ensuring each outlet meets Crave's standards. The Minimum Performance Schedule acts as a contractual obligation, and failure to meet it could result in penalties or termination of the development agreement.
Prospective Multi-Unit Developers should carefully review the Minimum Performance Schedule and Development Area details in Attachments 1 and 2 of the Multi-Unit Development Agreement. They should also assess their financial and operational capabilities to ensure they can meet the development obligations. Understanding the terms of the Franchise Agreement, which governs the operation of each individual Crave outlet, is also crucial.