What happens to the Crave Cookies Manual upon termination of the franchise agreement?
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 exp
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must return all copies of the Manual to Crave Cookies Franchising. This requirement is part of the broader obligations that survive the termination of the agreement, which also include those pertaining to non-competition, confidentiality, indemnity, and dispute resolution.
Specifically, the franchisee is obligated to return all copies of the Manual, along with any Confidential Information and other materials provided by Crave Cookies Franchising. This includes materials created by a third party for the franchisee related to the business operation, and all items containing any Marks, copyrights, and other proprietary items. Additionally, the franchisee must delete all Confidential Information and proprietary materials from electronic devices.
This provision ensures that Crave Cookies retains control over its proprietary information and operational methods after a franchise agreement ends. It prevents former franchisees from using the brand's confidential knowledge to operate a competing business or otherwise benefit from the Crave Cookies system without authorization. This is a standard practice in franchising to protect the brand's intellectual property and maintain consistency across the franchise network.
Failure to comply with this requirement could result in legal action by Crave Cookies Franchising to enforce the return of the Manual and other confidential materials. This obligation is in addition to other post-termination duties, such as ceasing to operate under the Crave Cookies brand and de-identifying the former franchise location.