Is Crave Cookies Franchising obligated to cure a default on behalf of the franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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 obligated to cure a default on behalf of the franchisee. Section 11.3 of the franchise agreement states that Crave Cookies Franchising has the right, but not the obligation, to take action to cure a default on behalf of the franchisee. If Crave Cookies Franchising chooses to cure a default, it will not incur any liability to the franchisee by doing so.
If Crave Cookies Franchising elects to cure a franchisee's default, the franchisee is responsible for reimbursing Crave Cookies Franchising for all costs and expenses incurred, including internal costs, plus an additional 10% administrative fee. This means that while Crave Cookies may step in to help a franchisee in default, it is ultimately the franchisee's responsibility to cover the financial burden of the cure, along with an extra charge for administrative handling.
This clause protects Crave Cookies Franchising from being forced to intervene in every default situation, while also allowing them the flexibility to assist franchisees when it benefits the system as a whole. Franchisees should be aware that while help may be available, it comes at a cost, and they should not rely on Crave Cookies Franchising to resolve their default situations.