Under what conditions can a Crave Cookies franchisee obtain a successor franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Franchise Agreement (FA): § 3.1 Multi-Unit Development Agreement (MUDA): none | 10 years from date of franchise agreement. |
| b. Renewal or extension of the term | FA: § 3.2 MUDA: none | If you are in good standing at the end of the franchise term and in compliance with all the terms of this agreement, you may obtain a successor franchise agreement for a 5-year term. Your successor agreement may also provide an option to enter into a subsequent successor franchise agreement. |
| c. Requirements for franchisee to renew or extend | FA: § 3.2 MUDA: none | For our franchise system, “renewal” means that at the end of your term, you sign our successor franchise agreement for an additional 5-year term. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 34–38)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee may be able to obtain a successor franchise agreement under specific conditions. To be eligible for a successor agreement, the franchisee must be in good standing and in compliance with all the terms of the existing franchise agreement at the end of the current franchise term. If these conditions are met, the franchisee may obtain a successor franchise agreement for an additional 5-year term. The successor agreement may also provide an option for a subsequent successor franchise agreement.
It is important to note that the terms and conditions of the successor franchise agreement may differ materially from those of the original franchise agreement. This means that aspects such as royalty fees, advertising contributions, operational requirements, and other obligations could change. A prospective Crave Cookies franchisee should carefully review the terms of the successor agreement when it is offered to understand any new or modified obligations.
This renewal process is fairly standard in the franchise industry, where franchisors often update their franchise agreements to reflect changes in the market, legal requirements, or the overall business model. Franchisees should be prepared to adapt to these changes if they choose to renew their agreement. It is advisable to consult with a legal and financial advisor to fully understand the implications of signing a successor franchise agreement with Crave Cookies.