What constitutes a violation of Article 15 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' 2025 Franchise Disclosure Document, violating Article 15, which pertains to transfers, is grounds for default under the franchise agreement. Specifically, Section (vi) states that a franchisee's violation of Article 15 constitutes a breach of the agreement.
Article 15 outlines the conditions under which a Crave Cookies franchisee can transfer their franchise. The franchisor emphasizes that the rights and duties within the agreement are personal to the franchisee, and the franchisor relies on the franchisee's skills and abilities. Therefore, franchisees must provide Crave Cookies with at least 60 days' notice before any proposed transfer and must obtain the franchisor's consent. Crave Cookies may reject any proposed transfer for any reason.
Crave Cookies may impose conditions on transfer consents. These conditions include receiving a transfer fee of $10,000 (though this fee is waived in Washington state), plus broker and legal fees. Additionally, the proposed assignee must meet the franchisor's standards for new franchisees, not be a competitor, and execute the then-current form of the franchise agreement. Failing to comply with these transfer conditions would constitute a violation of Article 15 and thus a breach of the franchise agreement.