If a Crave Cookies franchisee does not meet the development schedule in the MUDA, what right does Crave Cookies have?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the exclusive right (unless stated otherwise) to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule in a mutually-agreed territory. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crave Cookies business, (3) you must be in compliance with all brand requirements at your open Crave Cookies business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if a franchisee enters into a Multi-Unit Development Agreement (MUDA) and fails to meet the agreed-upon development schedule, Crave Cookies retains the right to terminate the franchisee's right to develop additional outlets. This stipulation is in place to ensure that franchisees are committed to expanding the brand according to the mutually agreed-upon plan.
For a prospective Crave Cookies franchisee, this means that signing a MUDA comes with the responsibility of adhering to the development schedule. Failure to do so can result in the loss of the opportunity to develop additional Crave Cookies locations. However, the FDD also states that the franchisee is not obligated to develop additional outlets under the MUDA and may terminate it any time without penalty.
This clause protects Crave Cookies by ensuring that development plans are executed as agreed, maintaining brand consistency and market penetration. It also motivates franchisees to meet their obligations, as failure to do so results in losing future development rights. While the franchisee can terminate the MUDA without penalty, Crave Cookies can terminate the franchisee's right to develop additional outlets if the development schedule is not met.