Does the MUDA give the franchisee the right to construct, open, or operate a Crave Cookies business?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2. Form of Agreement. For Store #1, Franchisee and Crave Cookies Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Crave Cookies franchise, Franchisee shall execute Crave Cookies Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Crave Cookies business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Crave Cookies business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Crave Cookies business.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement (MUDA) does not, by itself, grant the franchisee the right to construct, open, or operate a Crave Cookies business. The MUDA is an agreement where the franchisee commits to developing multiple Crave Cookies locations, but each location requires its own separate franchise agreement.
Specifically, the FDD states that for the initial store, the franchisee and Crave Cookies execute a Franchise Agreement simultaneously with the MUDA. For each additional Crave Cookies franchise, the franchisee must execute Crave Cookies's current standard franchise agreement within three business days after leasing or acquiring a location. This clarifies that the MUDA serves as a framework for future development, but the actual right to operate a store comes from the individual franchise agreement for each location.
This distinction is important for prospective franchisees because it highlights that signing a MUDA is only the first step in developing multiple Crave Cookies locations. Franchisees must still meet all requirements and execute separate franchise agreements for each store they plan to open. This also means that if a franchisee fails to meet the obligations under the MUDA, such as the development schedule, Crave Cookies can terminate the MUDA, potentially impacting the franchisee's ability to open future locations.