Has any party associated with Crave Cookies been convicted of a felony?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10 year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise,
securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Item 23 includes an addendum that addresses whether certain parties have been convicted of a felony. Specifically, the FDD states that, except as provided elsewhere, no party including the franchisor, its predecessor, persons identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark, has been convicted of a felony or pleaded nolo contendere to a felony charge. This statement applies to convictions or pleas within the 10-year period immediately preceding the application for registration.
In addition to felony convictions, the disclosure also covers misdemeanor charges and civil actions alleging violations of franchise, antifraud, or securities laws; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices. The disclosure also confirms that no such party is subject to a currently effective injunctive or restrictive order relating to the franchise or specific business laws.
This information is crucial for prospective franchisees as it provides insight into the background and legal standing of Crave Cookies and its associated parties. A clean record, as indicated by the disclosure, can instill confidence in the stability and ethical practices of the franchise system. Conversely, any past legal issues or ongoing litigation could raise concerns and warrant further investigation by potential franchisees.