What is the length of each renewal period for a Crave Cookies franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 franchise agreement has an initial term of 10 years. Upon expiration of the initial term, a franchisee may have the option to enter into a successor agreement for up to two additional periods. Each of these renewal periods is for a term of 5 years.
To be eligible for renewal, the Crave Cookies franchisee must meet several conditions. These include notifying Crave Cookies Franchising of their election to renew within a specific timeframe (90 to 180 days before the end of the current term), complying with all agreements with Crave Cookies Franchising, and making any required renovations to conform to the then-current system standards.
Additionally, the franchisee must execute Crave Cookies Franchising's current standard form of franchise agreement and related documents, which may have materially different terms, including potentially higher or different fees. The franchisee and each owner must also execute a general release of any and all claims against Crave Cookies Franchising. These conditions are typical in franchising, as franchisors want to ensure that franchisees are up-to-date with brand standards and release any potential liabilities before continuing the relationship.