Under what circumstances can Crave Cookies Franchising terminate the franchise agreement without providing an opportunity to cure?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Without Cure Period.
Crave Cookies Franchising may terminate this Agreement by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
(i) Franchisee misrepresented or omitted material facts when applying to be a franchisee, or breaches any representation in this Agreement;
(ii) Franchisee knowingly submits any false report or knowingly provides any other false information to Crave Cookies Franchising;
(iii) A receiver or trustee for the Business or all or substantially all of Franchisee's property is appointed by any court, or Franchisee makes a general assignment for the benefit of Franchisee's creditors, or Franchisee is unable to pay its debts as they become due, or a levy or execution is made against the Business, or an attachment or lien remains on the Business for 30 days unless the attachment or lien is being duly contested in good faith by Franchisee, or a petition in bankruptcy is filed by Franchisee, or such a petition is filed against or consented to by Franchisee and the petition is not dismissed within 45 days, or Franchisee is adjudicated as bankrupt;
(iv) Franchisee fails to open for business by the date specified on the Summary Page;
(v) Franchisee loses possession of the Location;
(vi) Franchisee or any Owner commits a material violation of Section 7.2 (compliance with laws) or Section 13.1 (confidentiality), violates Section 13.2 (non-compete) or Article 15 (transfer), or commits any other violation of this Agreement which by its nature cannot be cured;
(vii) Franchisee abandons or ceases operation of the Business for more than five consecutive days;
(viii) Franchisee or any Owner slanders or libels Crave Cookies Franchising or any of its employees, directors, or officers;
(ix) Franchisee refuses to cooperate with or permit any audit or inspection by Crave Cookies Franchising or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2;
(x) Franchisee has received two or more notices of default and Franchisee commits another breach of this Agreement, all in the same 12-month period;
(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
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, there are several instances where Crave Cookies Franchising can terminate the franchise agreement without offering the franchisee an opportunity to cure the breach. These situations involve serious misconduct or failures that are deemed irreparable or pose significant risk to the Crave Cookies brand.
Specifically, Crave Cookies can terminate the agreement without a cure period if the franchisee misrepresents or omits material facts during the application process or breaches any representation made in the agreement. Similarly, knowingly submitting false reports or providing false information to Crave Cookies is grounds for immediate termination. Other causes include situations where the franchisee's financial stability is severely compromised, such as the appointment of a receiver or trustee, inability to pay debts, bankruptcy, or abandonment of the business for more than five consecutive days.
Furthermore, actions that directly harm the Crave Cookies brand or system can lead to termination without a cure period. These include committing a material violation of laws or confidentiality agreements, violating non-compete clauses, slandering Crave Cookies, refusing to cooperate with audits or inspections, or failing health inspections multiple times. Additionally, if the franchisee receives two or more default notices within a 12-month period and commits another breach, or if any agreement between the franchisee (or its affiliate) and Crave Cookies (or its affiliate) is terminated due to a breach, Crave Cookies can terminate the franchise agreement immediately.
These termination rights without opportunity to cure are more stringent than typical franchise agreements, which usually allow a cure period for most breaches. A prospective Crave Cookies franchisee should be aware of these conditions and understand the importance of compliance to avoid immediate termination of their franchise agreement.