In the Crave Cookies Franchise Agreement, what is the significance of the 'Effective Date'?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement is made between Crave Cookies Franchising, LLC, a Utah limited liability company ("Crave Cookies Franchising"), and Franchisee effective as of the date signed by Crave Cookies Franchising (the "Effective Date").
ARTICLE 3. TERM
3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
(i) pay all amounts owed to Crave Cookies Franchising based on the operation of the Business through the effective date of termination or expiration;
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, the 'Effective Date' is the date the Franchise Agreement is signed by Crave Cookies Franchising LLC, marking the commencement of the agreement between Crave Cookies Franchising and the franchisee. This date is significant because it marks the beginning of the 10-year term of the agreement.
The 'Effective Date' is the starting point for calculating various obligations and deadlines within the franchise agreement. For instance, the franchisee's rights and responsibilities, such as paying royalty fees and adhering to operational standards, begin from this date. Similarly, the term length and any renewal options are calculated from the 'Effective Date'.
Upon termination or expiration of the Franchise Agreement, franchisees must pay all amounts owed to Crave Cookies based on the operation of the business through the effective date of termination or expiration. Understanding the 'Effective Date' is crucial for Crave Cookies franchisees as it sets the timeline for their entire business relationship with the franchisor and impacts their operational and financial obligations.