What constitutes misrepresentation of material facts when applying to be a Crave Cookies franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Franchisee misrepresented or omitted material facts when applying to be a franchisee, or breaches any representation in this Agreement;
(ii) Franchisee knowingly submits any false report or knowingly provides any other false information to Crave Cookies Franchising;
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, misrepresenting or omitting material facts during the application process to become a franchisee is a breach of the franchise agreement. This also includes breaching any representation made within the agreement itself.
Submitting false reports or knowingly providing false information to Crave Cookies Franchising also constitutes a misrepresentation of material facts. This clause ensures that franchisees are honest and transparent in their dealings with the franchisor, providing accurate data and documentation as required.
These stipulations are fairly standard in franchise agreements. Franchisors need to rely on the information provided by potential franchisees to make informed decisions about awarding franchises. Misrepresentation can lead to the termination of the franchise agreement, as stated in Item 22, and potentially expose the franchisee to legal liabilities.