factual

Does the Crave Cookies franchise agreement allow franchisees and their owners to violate any existing agreements?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (xi) Crave Cookies Franchising (or any affiliate) terminates any other agreement with Franchisee (or any affiliate) due to the breach of such other agreement by Franchisee (or its affiliate) (provided that termination of a Multi-Unit

  • Development Agreement with Franchisee or its affiliate shall not give Crave Cookies Franchising the right to terminate this Agreement);

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to the 2025 Crave Cookies Franchise Disclosure Document, the franchise agreement does not allow franchisees or their owners to violate existing agreements. In fact, the agreement outlines specific scenarios where a breach of other agreements can lead to termination of the Crave Cookies franchise agreement. Specifically, if Crave Cookies Franchising terminates another agreement with the franchisee (or an affiliate) due to a breach of that agreement by the franchisee (or its affiliate), it can be grounds for terminating the Crave Cookies franchise agreement. However, the termination of a Multi-Unit Development Agreement with the franchisee or its affiliate does not give Crave Cookies Franchising the right to terminate the franchise agreement.

This provision protects Crave Cookies by ensuring franchisees and their owners adhere to all contractual obligations, not just the franchise agreement. It also motivates franchisees to uphold all agreements with Crave Cookies Franchising or its affiliates, as failure to do so could jeopardize their franchise.

It is important to note the exception for Multi-Unit Development Agreements, which suggests these agreements have separate remedies for termination that do not automatically trigger termination of the standard franchise agreement. Prospective franchisees should carefully review all related agreements to understand the full scope of their contractual obligations and the potential consequences of breaching those agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.