What is the condition for the automatic termination of the Crave Cookies MUDA?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
Default and Termination.** The MUDA is automatically terminated without opportunity for Franchisee to cure, if any of the following occur:
(i) Franchisee fails to satisfy the development schedule; or
(ii) Crave Cookies Franchising has the right to terminate any franchise agreement between Crave Cookies Franchising and Franchisee (or any affiliate thereof) due to Franchisee's default thereunder (whether or not Crave Cookies Franchising actually terminates such franchise agreement).
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies FDD, the Multi-Unit Development Agreement (MUDA) can be automatically terminated without an opportunity for the franchisee to remedy the situation under specific conditions. These conditions include failure to adhere to the development schedule outlined in the agreement. This means the franchisee must open Crave Cookies locations according to the timeline agreed upon in the MUDA.
Another condition that would trigger automatic termination is if Crave Cookies Franchising has the right to terminate any existing franchise agreement with the franchisee (or their affiliate) due to the franchisee's default. This applies whether or not Crave Cookies actually terminates the franchise agreement. This clause underscores the importance of maintaining compliance with all franchise agreements to avoid jeopardizing the MUDA.
These terms are significant for prospective Crave Cookies multi-unit franchisees as they highlight the strict adherence required to the development schedule and the performance standards necessary to maintain all franchise agreements. Failing to meet these requirements can result in the immediate termination of the MUDA, potentially impacting the franchisee's expansion plans and investment. Therefore, franchisees should carefully review and understand the development schedule and compliance terms before entering into a MUDA with Crave Cookies.