What is the name of the agreement that allows a Crave Cookies franchisee to establish additional franchised outlets?
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, a franchisee can obtain the right to establish additional franchised outlets by signing a Multi-Unit Development Agreement, or MUDA. This agreement, which is included as Exhibit C in the disclosure document, allows the franchisee the exclusive right to open a mutually agreed upon number of additional Crave Cookies outlets within a mutually agreed territory, according to a mutually agreed schedule.
However, the MUDA is subject to certain conditions. The franchisee must adhere to the development schedule, possess the financial and organizational capacity to manage each additional Crave Cookies business, comply with all brand requirements at their existing Crave Cookies locations, and avoid defaulting on any agreements with Crave Cookies. The franchisor retains approval rights over the locations and territories for these future sites, ensuring they meet the current standards.
It is important to note that a franchisee is not obligated to develop additional outlets under the MUDA and can terminate the agreement at any time without penalty. However, Crave Cookies reserves the right to terminate the franchisee's right to develop additional outlets if the development schedule outlined in the MUDA is not met. This agreement is beneficial for franchisees looking to expand their operations, but it also places certain obligations on them to ensure continued compliance and successful development.