Does the termination of a Multi-Unit Development Agreement affect the Crave Cookies franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(xi) Crave Cookies Franchising (or any affiliate) terminates any other agreement with Franchisee (or any affiliate) due to the breach of such other agreement by Franchisee (or its affiliate) (provided that termination of a Multi-Unit
Development Agreement with Franchisee or its affiliate shall not give Crave Cookies Franchising the right to terminate this Agreement);
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the termination of a Multi-Unit Development Agreement with a franchisee or its affiliate does not automatically give Crave Cookies Franchising the right to terminate the Franchise Agreement. This provision protects franchisees who may have multiple agreements with Crave Cookies.
This clause is significant for potential multi-unit developers as it ensures that the failure or termination of one development agreement does not necessarily jeopardize their existing Crave Cookies franchise agreements. This provides a level of security and allows franchisees to manage their portfolio of Crave Cookies locations with some independence.
However, it is important to note that other breaches of agreements with Crave Cookies Franchising could still lead to the termination of the Franchise Agreement, as outlined in other sections of the document. Franchisees should carefully review all agreements and ensure compliance to avoid potential termination.