What constitutes a 'breach of this Agreement' that would trigger the two-notice rule for Crave Cookies franchisees?

According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee who receives two or more notices of default within a 12-month period can face termination of their franchise agreement if they commit another breach. This 'two-notice rule' means that after receiving multiple default notices, any subsequent breach, regardless of its severity, can trigger termination.

Several actions can lead to termination without an opportunity to cure, including misrepresenting or omitting material facts in the franchise application, breaching any representation in the agreement, knowingly submitting false reports, or the termination of any other agreement with the franchisee due to a breach. Further, actions such as being charged with or convicted of a felony, actions likely to unfavorably affect the Crave Cookies brand, or failing health inspection standards multiple times can also lead to termination.

Other breaches that could lead to termination include failing to open for business by the specified date, losing possession of the location, violating compliance with laws or confidentiality, abandoning the business for more than five days, slandering Crave Cookies, refusing to cooperate with audits, or failing inspections. These breaches highlight the importance of adhering to the franchise agreement and maintaining operational standards to avoid potential termination.

This clause underscores the importance of a Crave Cookies franchisee's consistent compliance with all aspects of the franchise agreement. Franchisees should ensure they understand and adhere to all operational standards, legal requirements, and reporting obligations to avoid receiving default notices and risking termination under the two-notice rule.