Does the termination of a Multi-Unit Development Agreement give Crave Cookies Franchising the right to terminate the 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 their affiliate does not automatically give Crave Cookies Franchising the right to terminate the franchise agreement. However, Crave Cookies Franchising retains the right to terminate the franchise agreement under other specified conditions.
Crave Cookies Franchising can terminate the agreement if the franchisee fails to comply with menu requirements, endangers health or safety, violates health or sanitation laws without rectifying the issue within 24 hours of notice, or fails to make payments when due without curing the non-payment within 10 days of notice. Additionally, if a franchisee breaches the agreement in a manner not already specified and fails to resolve it to Crave Cookies Franchising's satisfaction within 30 days after notice, termination is possible.
Crave Cookies Franchising can also terminate the agreement without allowing an opportunity to cure if the franchisee misrepresents or omits material facts during the application process, knowingly submits false reports, or provides false information to Crave Cookies Franchising. Other causes for termination include a franchisee or owner being charged with, pleading guilty to, or being convicted of a felony, or if their actions could unfavorably affect the Crave Cookies brand. Failing health inspections or failing to achieve a passing score on inspections conducted by Crave Cookies Franchising multiple times within a 36-month period can also lead to termination.