What constitutes a violation of Section 11.2 for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(ix) Franchisee refuses to cooperate with or permit any audit or inspection by Crave Cookies Franchising or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2;
11.2 Inspections. Crave Cookies Franchising may enter the premises of the Business from time to time during normal business hours and conduct an inspection.
Franchisee shall cooperate with Crave Cookies Franchising's inspectors.
The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials.
Crave Cookies Franchising may videotape and/or take photographs of the inspection and the Business.
Crave Cookies Franchising may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee's refusal to cooperate with or permit any audit or inspection by Crave Cookies Franchising or its agents or contractors, or otherwise failing to comply with Section 10.5 or Section 11.2, constitutes a breach of the franchise agreement.
Section 11.2 specifically outlines Crave Cookies's right to conduct inspections of the franchisee's business premises during normal business hours. These inspections may involve observing operations, conducting physical inventory, evaluating conditions, monitoring sales, speaking with employees and customers, and removing samples. Crave Cookies is also permitted to videotape or photograph the inspection and the business.
Furthermore, Crave Cookies may establish a minimum score requirement for these inspections. Failure to meet or exceed this minimum score will be considered a default under the Franchise Agreement. Therefore, franchisees must actively cooperate with inspections and maintain standards to avoid violating Section 11.2 and potentially breaching the agreement.