What is the effect of the Crave Cookies MUDA termination on the franchisee's right to operate a Crave Cookies business?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
01 (608) 266-2801 | Securities and Franchise Registration Wisconsin Securities Commission 201 West Washington Avenue, Suite 300 Madison, WI 53703 |- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Crave Cookies Franchising for the first location. Each additional location listed on the MUDA can be reserved with a deposit of $5000 with balance owing at the time of lease signing, The Initial Franchise Fee and deposits are non-refundable.
2. Form of Agreement. For Store #1, Franchisee and Crave Cookies Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Crave Cookies franchise, Franchisee shall execute Crave Cookies Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Crave Cookies business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Crave Cookies business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Crave Cookies business.
3. Development Area. Franchisee shall locate the first location in the Development Area indicated on the Summary Page of this Franchise Agreement. Subsequent areas may be opened in any order so long as each Opening Deadline is met in order. Franchisee acknowledges that it does not have exclusive rights to develop, open or operate Crave Cookies businesses in the Development Area.
**4.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the termination of the Multi-Unit Development Agreement (MUDA) can significantly impact a franchisee's ability to develop and operate multiple Crave Cookies businesses. The MUDA outlines the development schedule and conditions under which a franchisee can open additional locations beyond the initial store. If the MUDA is terminated due to the franchisee's failure to meet the development schedule or if Crave Cookies has grounds to terminate any existing franchise agreement with the franchisee, the MUDA is automatically terminated.
Specifically, the MUDA does not grant the franchisee the right to open or operate a Crave Cookies business; this right is only established through a separate franchise agreement for each location. Therefore, if the MUDA is terminated, the franchisee loses the ability to develop further Crave Cookies franchises under the terms of that agreement. However, the franchisee's existing franchise agreements for already operating locations may remain in effect, provided there are no independent grounds for termination of those agreements.
It is important to note that the franchisee's commitment to develop Crave Cookies businesses under the MUDA is considered an option, limiting the franchisee's liability for lost future revenues or profits from unopened locations if Crave Cookies terminates the MUDA for the franchisee's default. The franchisee also has the option to terminate the MUDA at any time. This arrangement provides some flexibility but also underscores the importance of adhering to the development schedule and maintaining compliance with all brand requirements to avoid termination of the MUDA and the loss of future development rights.