What is the initial term length of the Crave Cookies franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement for up to 2 additional periods of 5 years each, subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Crave Cookies Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Crave Cookies Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Crave Cookies Franchising) renovations and changes to the Business as Crave Cookies Franchising requires (including a Remodel, if applicable) to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Crave Cookies Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
- (v) Franchisee and each Owner executes a general release (on Crave Cookies Franchising's then-standard form) of any and all claims against Crave Cookies
Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the initial term of the franchise agreement is 10 years, beginning on the effective date of the agreement. This means a franchisee will operate their Crave Cookies business under the terms of the agreement for a decade.
After the initial 10-year term, a franchisee has the option to enter into a successor agreement. This allows them to continue operating their Crave Cookies franchise for up to two additional periods of 5 years each, potentially extending the franchise relationship significantly.
However, to qualify for these renewal terms, the franchisee must meet several conditions. These include notifying Crave Cookies of their intent to renew within a specific timeframe (90 to 180 days before the end of the current term), remaining in full compliance with all agreements, completing any required renovations to meet current system standards, executing the then-current franchise agreement (which may have different terms and fees), and signing a general release of claims against Crave Cookies. These stipulations ensure that franchisees remain committed to the brand standards and resolve any potential disputes before continuing the franchise relationship.