What constitutes a 'material violation' of Section 13.1 for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vi) Franchisee or any Owner commits a material violation of Section 7.2 (compliance with laws) or Section 13.1 (confidentiality), violates Section 13.2 (non-compete) or Article 15 (transfer), or commits any other violation of this Agreement which by its nature cannot be cured;
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a material violation of Section 13.1 (confidentiality) is grounds for termination of the franchise agreement. Specifically, Item 22 outlines various scenarios that constitute a breach of contract, and section (vi) states that a material violation of Section 13.1 is cause for termination. This means that if a franchisee or any owner of the franchise violates the confidentiality terms outlined in Section 13.1 of the agreement, Crave Cookies has grounds to terminate the agreement.
Section 13.1 likely contains specific details about what information is considered confidential and what actions would constitute a breach. Franchisees should carefully review Section 13.1 to understand their obligations regarding confidential information.
It's important to note that Crave Cookies can terminate the agreement without providing an opportunity to cure the violation if it falls under the conditions described in subsection (d). This highlights the importance of understanding and adhering to the confidentiality requirements outlined in Section 13.1 to avoid immediate termination of the franchise agreement.