Does the definition of 'Losses' for Crave Cookies include loss of Crave Cookies Franchising's reputation and goodwill?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Losses" includes (but is not limited to) all losses; damages; fines; charges; expenses; lost profits; reasonable attorneys' fees; travel expenses, expert witness fees; court costs; settlement amounts; judgments; loss of Crave Cookies Franchising's reputation and goodwill; costs of or resulting from delays; financing; costs of advertising material and media time/space and the costs of changing, substituting or replacing the same; and any and all expenses of recall, refunds, compensation, public notices and other such amounts incurred in connection with the matters described.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the definition of "Losses" includes loss of Crave Cookies Franchising's reputation and goodwill. This definition is relevant within the context of the franchise agreement and specifies the scope of potential liabilities or damages that may arise.
The inclusion of "loss of Crave Cookies Franchising's reputation and goodwill" in the definition of "Losses" means that if a franchisee's actions or inactions result in damage to the brand's reputation or goodwill, the franchisee may be held responsible for those damages. This could include situations where the franchisee violates brand standards, engages in unethical behavior, or otherwise harms the public perception of Crave Cookies.
For a prospective Crave Cookies franchisee, this definition highlights the importance of adhering to the franchise agreement and maintaining high standards of operation. It also underscores the potential financial risks associated with damaging the brand's reputation. Franchisees should understand that their actions can have a direct impact on the brand's overall value and that they could be held liable for any resulting losses.