Is Crave Cookies Franchising liable for the franchisee's obligations to any third party?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
18.1 Relationship of the Parties. The parties are independent contractors, and neither is the agent, partner, joint venturer, or employee of the other. Crave Cookies Franchising is not a fiduciary of Franchisee. Crave Cookies Franchising does not control or have the right to control Franchisee or its Business. Any required specifications and standards in this Agreement and in the System Standards exist to protect Crave Cookies Franchising's interest in the System and the Marks, and the goodwill established in them, and not for the purpose of establishing any control, or duty to take control, over the Business. Crave Cookies Franchising has no liability for Franchisee's obligations to any third party whatsoever.
- 18.2 No Third-Party Beneficiaries. This Agreement does not confer any rights or remedies upon any person or entity other than Franchisee, Crave Cookies Franchising, and Crave Cookies Franchising's affiliates.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising is not liable for the franchisee's obligations to any third party whatsoever. The franchise agreement specifies that the relationship between the franchisee and Crave Cookies Franchising is that of independent contractors. Neither party is the agent, partner, joint venturer, or employee of the other.
This delineation is further reinforced by stating that Crave Cookies Franchising does not control, nor have the right to control, the franchisee's business operations. Any specifications and standards outlined in the agreement are designed to protect Crave Cookies Franchising's interest in the system, trademarks, and associated goodwill, rather than to exert control over the franchisee's day-to-day business.
The franchise agreement also explicitly states that it does not confer any rights or remedies upon any person or entity other than the franchisee, Crave Cookies Franchising, and Crave Cookies Franchising's affiliates. This clause reinforces the limited scope of liability and ensures that third parties cannot claim rights or remedies under the agreement.