What actions by the Crave Cookies franchisee or owner that negatively affect the brand can lead to termination?

According to Crave Cookies' 2025 Franchise Disclosure Document, certain actions by a franchisee or owner that negatively affect the brand can lead to the termination of the franchise agreement. Specifically, if a franchisee or any owner is accused by a governmental authority or third party of any act, or commits any act or series of acts, that Crave Cookies Franchising believes is reasonably likely to materially and unfavorably affect the Crave Cookies brand, the agreement may be terminated.

This provision gives Crave Cookies broad discretion to terminate the franchise agreement based on actions that it perceives as harmful to its brand. This could include a wide range of behaviors, from illegal activities to actions that generate negative publicity. The standard is whether the action is "reasonably likely to materially and unfavorably affect" the brand, which is subjective and determined by Crave Cookies Franchising.

For a prospective franchisee, this clause highlights the importance of maintaining a positive public image and avoiding any actions that could be construed as damaging to the Crave Cookies brand. Franchisees should be aware that their conduct, both personal and professional, could be scrutinized and potentially lead to termination of their franchise agreement, even without a conviction or formal finding of wrongdoing. This underscores the need for careful and ethical business practices, as well as responsible personal conduct, to protect their investment in the Crave Cookies franchise.