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What constitutes a 'significant danger to health or safety' that would allow Crave Cookies Franchising to terminate the agreement with a 24-hour cure period?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (a) Subject to 24-Hour Cure Period. Crave Cookies Franchising may terminate this Agreement if Franchisee fails to comply with menu requirements, or refuses to provide proof of compliance with menu requirements, or the Business is operated in a manner which, in Crave Cookies Franchising's reasonable judgment, constitutes a significant danger to the health or safety of any person, or the Business is found in violation of any health, safety, or sanitation laws, ordinances or regulations from a government entity, and does not cure such noncompliance or violation within twenty-four (24) hours of Franchisee's receipt of written notice.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to the 2025 Crave Cookies Franchise Disclosure Document, if a Crave Cookies franchise is operated in a manner that, in Crave Cookies Franchising's reasonable judgment, constitutes a significant danger to the health or safety of any person, or the Business is found in violation of any health, safety, or sanitation laws, ordinances or regulations from a government entity, Crave Cookies Franchising may terminate the agreement. The franchisee has 24 hours upon receipt of written notice to cure the issue.

This means that if a franchisee's actions or the condition of their business poses a considerable risk to the well-being of customers, employees, or others, Crave Cookies Franchising has grounds for immediate termination, provided the franchisee is notified and given a single day to fix the problem. This could include issues such as severe food safety violations, unsanitary conditions, or failure to comply with health regulations.

The short cure period of just 24 hours highlights the critical importance Crave Cookies places on maintaining health and safety standards. Franchisees must be vigilant in adhering to all relevant laws and regulations and ensuring their business operations do not pose any risk to individuals. Failure to do so could result in the termination of their franchise agreement.

It is important to note that the FDD does not provide specific examples of what might constitute a 'significant danger to health or safety.' Therefore, prospective franchisees should seek clarification from Crave Cookies Franchising regarding what specific actions or conditions would fall under this category to fully understand their obligations and potential risks.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.