What happens if a Crave Cookies franchisee continues operations after the franchise agreement expires or is terminated?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
likely to materially and unfavorably affect the Crave Cookies brand;
- (xiv) Franchisee fails to meet the health inspection standards described in Section 7.3(e) two or more times in any 36-month period; or
- (xv) Franchisee fails to achieve a passing score on an inspection conducted by Crave Cookies Franchising, LLC two or more times in any 36-month period.
- 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.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if a franchisee continues to operate under the Crave Cookies brand after the franchise agreement expires or is terminated, several immediate actions are required. The franchisee must immediately pay all outstanding amounts owed to Crave Cookies Franchising that are based on the business's operation up to the termination date. Additionally, all copies of the operations manual, confidential information, and any materials related to the business that were provided by Crave Cookies Franchising, including items with trademarks or copyrights, must be returned. The franchisee is also obligated to delete all confidential and proprietary materials from any electronic devices.
Furthermore, the franchisee must notify all relevant entities, such as telephone, internet, email, and directory services, about the termination or expiration of their right to use any numbers, addresses, domain names, or listings associated with Crave Cookies's marks. They must authorize the transfer of these assets to Crave Cookies Franchising or a new franchisee, and Crave Cookies Franchising is appointed as the attorney-in-fact to execute these transfers. Most importantly, the franchisee must cease doing business under any of Crave Cookies's trademarks immediately.
Within 30 days of termination or expiration, the franchisee is responsible for de-identifying the location at their own expense. This involves removing all Crave Cookies marks, signage, and trade dress to Crave Cookies Franchising's satisfaction. If the franchisee fails to do so, Crave Cookies Franchising has the right to enter the location and remove the marks and de-identify the location without being held liable for trespass or any damages caused during the process. These measures ensure that the franchisee no longer represents or benefits from the Crave Cookies brand after the agreement ends.