What happens if a Crave Cookies franchisee continues operating the business after the expiration of the term?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
(ii) return to Crave Cookies Franchising all copies of the Manual, Confidential Information and any and all other materials provided by Crave Cookies Franchising to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
(iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Crave Cookies Franchising or any new franchisee as may be directed by Crave Cookies Franchising, and Franchisee hereby irrevocably appoints Crave Cookies Franchising, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and
(iv) cease doing business under any of the Marks.
14.4 Remove Identification. Within 30 days after termination or expiration, Franchisee shall at its own expense "de-identify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Crave Cookies business, to the reasonable satisfaction of Crave Cookies Franchising.
Franchisee shall comply with any reasonable instructions and procedures of Crave
Cookies Franchising for de-identification. If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Crave Cookies Franchising may enter the Location to remove the Marks and de-identify the Location. In this event, Crave Cookies Franchising will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Crave Cookies Franchising.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, upon the expiration of the franchise agreement, the franchisee is obligated to take several immediate actions. The franchisee must pay all outstanding amounts owed to Crave Cookies that were based on the business's operation up to the expiration date. Additionally, all copies of the operations manual, confidential information, and any materials related to the business that Crave Cookies provided, or that were created by a third party for the franchisee, must be returned. This includes all items containing Crave Cookies' trademarks, copyrights, and other proprietary items. The franchisee is also required to delete all confidential information and proprietary materials from their electronic devices.
Furthermore, the Crave Cookies franchisee must notify all relevant entities, including telephone, internet, email, electronic network, and directory listing services, about the termination or expiration of their right to use any numbers, addresses, domain names, locators, directories, and listings associated with Crave Cookies' trademarks. They must authorize the transfer of these assets to Crave Cookies or a new franchisee, as directed by Crave Cookies. The franchisee also ceases doing business under any of the Crave Cookies' marks.
Within 30 days after the agreement's expiration, the franchisee is responsible for de-identifying the location at their own expense. This means removing all Crave Cookies trademarks, signage, and trade dress to Crave Cookies' reasonable satisfaction. If the franchisee fails to do so within this period, Crave Cookies has the right to enter the location to remove the marks and de-identify the location without being charged with trespass or being held accountable for any assets removed or altered, or for any damage caused during the process. These measures ensure that the brand's identity and proprietary information are protected after the franchise agreement concludes.