What specific actions are considered 'refusing to cooperate with or permit any audit or inspection' by Crave Cookies Franchising?

According to Crave Cookies' 2025 Franchise Disclosure Document, refusing to cooperate with or permit any audit or inspection by Crave Cookies or its agents or contractors is a breach of the franchise agreement. Specifically, Item 22 outlines the conditions under which a franchisee can be terminated, and section (ix) states that failure to comply with Section 10.5 (Records Audit) or Section 11.2 (Inspections) constitutes grounds for termination.

Section 10.5 grants Crave Cookies the right to examine and audit all books and records related to the business at any reasonable time, either at the franchise location or a designated location where the franchisee must deliver copies of the requested documents. Section 11.2 allows Crave Cookies to enter the premises during normal business hours to conduct inspections, which may include observing operations, taking inventory, evaluating conditions, monitoring sales, speaking with employees and customers, and taking samples. Franchisees are explicitly required to cooperate with these inspections, and Crave Cookies may videotape or take photographs during the inspection.

Therefore, any action by a franchisee that obstructs or hinders Crave Cookies' ability to conduct these audits or inspections, such as denying access to records, refusing entry to the premises, or preventing the franchisor from performing the outlined inspection activities, would be considered a failure to cooperate. This failure can result in a notice of default and potentially lead to the termination of the franchise agreement, especially if the franchisee has received two or more notices of default within a 12-month period and commits another breach.