For a Crave Cookies franchise, what is the role of the 'Principal Executive'?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
f any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify Crave Cookies Franchising within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has
decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-to-day general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Crave Cookies Franchising's reasonable approval.
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Crave Cookies Franchising, in the form of Attachment 3.
- 2.6 No Conflict. Franchisee represents to Crave Cookies Franchising that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order.
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 33)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the Principal Executive is the person primarily responsible for the Crave Cookies business. This individual must be designated on the Summary Page of the franchise agreement and have at least a 10% ownership interest in the franchise. While the Principal Executive doesn't have to manage the day-to-day operations, they must devote substantial time and attention to the business.
The Principal Executive plays a crucial role in the franchise's relationship with Crave Cookies Franchising. They, along with the General Manager if applicable, must complete the initial training program at least four weeks before the store opens. Crave Cookies Franchising may also require the Principal Executive to complete additional training programs periodically, and the franchisee is responsible for covering any associated travel and living expenses.
The Principal Executive is expected to attend all required in-person and remote meetings, including national or regional brand conventions, and cannot miss more than three consecutive meetings. If the Principal Executive dies, becomes incapacitated, transfers their interest, or is no longer the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Crave Cookies Franchising's approval. This ensures that there is always a responsible party overseeing the franchise and maintaining communication with the franchisor.