factual

Does Crave Cookies have the right to terminate the franchise agreement for any breach of the agreement?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

he agreements attached to this disclosure document.**

Provision Section in franchise or other agreement Summary
a. Length of the franchise term Franchise Agreement (FA): § 3.1 Multi-Unit Development Agreement (MUDA): none 10 years from date of franchise agreement.
b. Renewal or extension of the term FA: § 3.2 MUDA: none If you are in good standing at the end of the franchise term and in compliance with all the terms of this agreement, you may obtain a successor franchise agreement for a 5-year term. Your successor agreement may also provide an option to enter into a subsequent successor franchise agreement.
c. Requirements for franchisee to renew or extend FA: § 3.2 MUDA: none For our franchise system, “renewal” means that at the end of your term, you sign our successor franchise agreement for an additional 5-year term. You may be asked to sign a contract with materially different terms and conditions than your original contract.
t. Integration/merger clause FA: § 18.3 MUDA: § 7 Only the terms of the agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement (or MUDA) may not be enforceable. However, no claim made in any franchise agreement (or MUDA) is intended to disclaim the express representations made in this Disclosure Document.
--- --- ---
u. Dispute resolution by litigation or mediation FA: § 17.1 MUDA: § 7 Except for certain claims, for disputes there must be a face-to-face meeting, mediation and litigation (subject to applicable state law).
v. Choice of forum FA: §§ 17.1; 17.5 MUDA: § 7 Litigation will take place where our headquarters are located (currently, Holladay, Utah) (subject to applicable state law). Any legal proceedings will take place in the District Court of the United States, in the district where our headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where our headquarters is then located (subject to applicable state law).
w. Choice of law FA: § 18.8 Utah (subject to applicable state law).
MUDA: § 7
libel
of
us;
refusal
to
cooperate
with
our
business
inspection;
cease
operations
for
more
than
5
consecutive
days;
three
defaults
in
12
months;
cross-termination;
charge
or
conviction
of,
or
plea
to
a
felony,
or
commission
or
accusation
of
an
act
that
is
reasonably
likely
to
materially
and
unfavorably
affect
our
brand;
score
below
90/A
on
government
health
inspections
more
than
twice
in
36
months,
score
below
passing
grade
on
brand
inspection
more
than
twice
in
36
months;
any
other
breach
of
franchise
agreement
which
by
its
nature
cannot
be
cured.
Violation
of
the
franchise
agreement
or
other
agreement
gives
us
the
right
to
terminate
it.
If
you
fail
to
meet
the
development
schedule
in
your
franchise
agreement
or
MUDA,
those
agreements
are
automatically
terminated.
We
have
the
right
to
grant
an
extension.
In
a
MUDA
with
multiple
locations,
missing
one
development
deadline
will
operate
to
invalidate
the
entire
MUDA.
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i. Franchisee's obligations on termination/non-renewal FA: §§ 14.3 – 14.6 MUDA: none Pay all amounts due; return Manual and proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 34–38)

What This Means (2025 FDD)

According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies has the right to terminate the franchise agreement if a franchisee violates the agreement. Specifically, any breach of the franchise agreement gives Crave Cookies the right to terminate it.

Additionally, if a franchisee fails to meet the development schedule outlined in their franchise agreement or Multi-Unit Development Agreement (MUDA), those agreements are automatically terminated. However, Crave Cookies retains the right to grant an extension. For franchisees with a MUDA covering multiple locations, missing a development deadline for one location will invalidate the entire MUDA.

Crave Cookies also lists other conditions that could lead to termination, including libel of Crave Cookies, refusal to cooperate with business inspections, ceasing operations for more than 5 consecutive days, three defaults in 12 months, cross-termination, a felony charge or conviction, or scoring below 90/A on government health inspections more than twice in 36 months, or scoring below a passing grade on brand inspections more than twice in 36 months. Some breaches, by their nature, cannot be cured, which also gives Crave Cookies the right to terminate the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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