Can Crave Cookies choose not to renew a franchise agreement without good cause?

According to the 2025 Crave Cookies FDD, Crave Cookies is not allowed to fail to renew a franchise without good cause or in bad faith. However, the franchise agreement can state that it is not renewable upon expiration or that it is renewable if the franchisee meets certain conditions specified in the agreement. This means that while Crave Cookies cannot arbitrarily decide not to renew a franchise, the specific terms of the franchise agreement dictate the conditions under which renewal is possible.

This clause protects franchisees from unfair non-renewal, ensuring that Crave Cookies must have a legitimate reason based on the franchisee's conduct or performance to deny renewal. It also allows Crave Cookies to set clear expectations for renewal within the franchise agreement, such as meeting certain sales targets, maintaining brand standards, or completing required training.

For a prospective Crave Cookies franchisee, this highlights the importance of carefully reviewing the franchise agreement's renewal terms. Understanding these conditions is crucial for planning the long-term operation of the franchise and ensuring eligibility for renewal. Franchisees should seek clarification from Crave Cookies regarding any ambiguous or unclear renewal criteria before signing the agreement.

It is also important to note that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, may supersede the franchise agreement in the areas of termination and renewal of your franchise. Therefore, franchisees in Washington should be aware of their rights under this law.