What is the required action for the franchisee to construct, open, and operate each Crave Cookies business?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
01 (608) 266-2801 | Securities and Franchise Registration Wisconsin Securities Commission 201 West Washington Avenue, Suite 300 Madison, WI 53703 |- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Crave Cookies Franchising for the first location. Each additional location listed on the MUDA can be reserved with a deposit of $5000 with balance owing at the time of lease signing, The Initial Franchise Fee and deposits are non-refundable.
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.
3. Development Area. Franchisee shall locate the first location in the Development Area indicated on the Summary Page of this Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee must execute a separate franchise agreement for each Crave Cookies business they intend to construct, open, and operate. This requirement is outlined within the context of a Multi-Unit Development Agreement (MUDA). The MUDA itself does not grant the franchisee the right to construct, open, or operate a Crave Cookies business.
Specifically, for the first store, the franchisee and Crave Cookies Franchising execute the Franchise Agreement simultaneously with the MUDA. For each additional Crave Cookies franchise, the franchisee must execute Crave Cookies Franchising's then-current standard form of franchise agreement no later than three business days after the franchisee leases or acquires a location.
This stipulation ensures that each Crave Cookies location operates under a current and specific agreement, allowing Crave Cookies to maintain standards and control over its brand. It also allows Crave Cookies to assess the franchisee's financial and operational capabilities before each new location, as the right to develop subsequent franchises is contingent on the franchisee possessing sufficient financial and organizational capacity and being in full compliance with brand requirements at its open Crave Cookies businesses.