What actions can Crave Cookies Franchising take regarding supplies if the franchisee is in default?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.4 Right to Discontinue Supplies Upon Default. While Franchisee is in default or breach of this Agreement, Crave Cookies Franchising may (i) require that Franchisee pay cash on delivery for products or services supplied by Crave Cookies Franchising, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
No such action by Crave Cookies Franchising shall be a breach or constructive termination of this Agreement, change in competitive circumstances or similarly characterized, and Franchisee shall not be relieved of any obligations under this Agreement because of any such action.
Such rights of Crave Cookies Franchising are in addition to any other right or remedy available to Crave Cookies Franchising.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, if a franchisee is in default or breach of the Franchise Agreement, Crave Cookies Franchising has specific rights regarding the supply of products and services. Crave Cookies may require the franchisee to pay cash on delivery for any products or services it supplies. Additionally, Crave Cookies can stop selling or providing any products and services to the franchisee altogether. Crave Cookies Franchising can also request that its third-party vendors cease selling or providing products or services to the franchisee.
These actions by Crave Cookies Franchising do not constitute a breach or constructive termination of the Franchise Agreement, nor do they change the competitive circumstances. The franchisee remains obligated under the agreement despite these actions. These rights are in addition to any other remedies available to Crave Cookies Franchising.
For a prospective franchisee, this means that being in default can have immediate and significant consequences on their ability to operate the Crave Cookies business. The franchisee may lose access to essential supplies, which could severely impact their ability to serve customers and generate revenue. It also highlights the importance of adhering to the Franchise Agreement to avoid any disruption in the supply chain and maintain a good relationship with Crave Cookies Franchising.