Can Crave Cookies terminate the franchise agreement if a franchisee refuses to cooperate with a business inspection?

According to Crave Cookies's 2025 Franchise Disclosure Document, refusal to cooperate with a business inspection is grounds for termination of the franchise agreement. The FDD outlines various conditions that could lead to termination, and specifically notes that a franchisee's refusal to cooperate with Crave Cookies's business inspection provides Crave Cookies with the right to terminate the franchise agreement. This is a fairly standard clause in franchise agreements, as franchisors need to ensure brand standards and operational compliance across all locations.

This provision means that a Crave Cookies franchisee must allow and assist with any inspections conducted by Crave Cookies. Failure to do so can have serious consequences, including the loss of the franchise. It is important for prospective franchisees to understand that these inspections are part of maintaining the consistency and quality of the Crave Cookies brand.

Beyond refusal to cooperate with inspections, the 2025 FDD lists other actions that could lead to termination, such as libel of Crave Cookies, ceasing operations for more than 5 consecutive days, three defaults in 12 months, cross-termination, certain criminal charges, scoring below 90/A on government health inspections more than twice in 36 months, scoring below a passing grade on brand inspections more than twice in 36 months, or any other breach of the franchise agreement that cannot be cured. Franchisees should carefully review all termination conditions outlined in the Franchise Agreement to fully understand their obligations and avoid potential breaches.