What constitutes an 'Action' according to the Crave Cookies franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 1. DEFINITIONS
- "Action" means any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, judgment or appeal thereof, whether formal or informal.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the franchise agreement defines 'Action' broadly. This definition is important because the term 'Action' is used throughout the franchise agreement, especially in clauses dealing with potential legal disputes, indemnification, and infringement issues.
Specifically, the Crave Cookies franchise agreement states that an 'Action' encompasses any type of legal or governmental proceeding, whether formal or informal. This includes lawsuits, claims, demands, governmental investigations, and inquiries. It also extends to judgments and any appeals related to those judgments.
For a prospective Crave Cookies franchisee, this definition means that the franchisor considers a wide range of scenarios as 'Actions' that could trigger certain obligations or protections under the franchise agreement. For example, if a customer files a claim against the franchisee, or if a governmental agency initiates an investigation, these would be considered 'Actions' under the agreement. This definition is fairly standard in franchise agreements, as it aims to cover any situation that could lead to legal or financial repercussions for either the franchisor or the franchisee.