Is not being in default under any agreement with Crave Cookies Franchising a condition for developing additional franchises?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Conditions.** Franchisee's right to develop each Crave Cookies franchise after the Store #1 is subject to the following:
(i) Franchisee must possess sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crave Cookies business, in the reasonable judgment of Crave Cookies Franchising, and
(ii) Franchisee must be in full compliance with all brand requirements at its open Crave Cookies businesses, and not in default under any Franchise Agreement or any other agreement with Crave Cookies Franchising.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee's right to develop additional Crave Cookies franchises after the first store is subject to certain conditions. One of these conditions is that the franchisee must not be in default under any Franchise Agreement or any other agreement with Crave Cookies Franchising. This means that if a franchisee violates the terms of their existing agreements with Crave Cookies, they may be prevented from developing further franchise locations.
In practical terms, this condition ensures that franchisees maintain a good standing with the franchisor before expanding their operations. Defaulting on agreements could include failure to pay fees, not adhering to brand standards, or violating operational guidelines. Crave Cookies Franchising reserves the right to assess whether the franchisee has the organizational and financial capacity to handle additional locations.
This requirement is fairly standard in franchising, as franchisors want to ensure that franchisees expanding their operations are financially stable and compliant with the franchise system's standards. For a prospective Crave Cookies franchisee, this highlights the importance of adhering to all agreements and maintaining a positive relationship with the franchisor to ensure future growth opportunities are not jeopardized.