What is the franchisee required to do if deficiencies are noted during a Crave Cookies inspection?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Crave Cookies Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection.
If Crave Cookies Franchising conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed inspection), then Crave Cookies Franchising may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
- 11.3 Crave Cookies Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Crave Cookies Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Crave Cookies Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
- 11.4 Right to Discontinue Supplies Upon Default. While Franchisee is in default or breach of this Agreement, Crave Cookies Franchising may (i) require that Franchisee pay cash on delivery for products or services supplied by Crave Cookies Franchising, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee is required to correct any deficiencies noted during an inspection as soon as reasonably practical. Crave Cookies Franchising may also videotape and/or take photographs of the inspection and the business.
Crave Cookies Franchising may set a minimum score requirement for inspections, and failure to meet or exceed the minimum score will be a default under the Franchise Agreement. If an inspection is conducted due to a governmental report, customer complaint, or a default or non-compliance with any System Standard, Crave Cookies Franchising may charge the franchisee for all out-of-pocket expenses plus its then-current inspection fee.
Furthermore, if the franchisee breaches or defaults under any provision of the agreement, Crave Cookies Franchising has the right, but not the obligation, to take action to correct the default on behalf of the franchisee, without any liability to the franchisee. The franchisee is then required to reimburse Crave Cookies Franchising for all costs and expenses incurred, including a 10% administrative fee. While a franchisee is in default or breach of the agreement, Crave Cookies Franchising may require cash on delivery for products or services, stop selling or providing products and services, and/or request third-party vendors to do the same.