Under what conditions can a Crave Cookies franchisee terminate the franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1 Termination by Franchisee. Franchisee may terminate this Agreement only if Crave Cookies Franchising violates a material provision of this Agreement and fails to cure or to make substantial progress toward curing the violation within 30 days after receiving written notice from Franchisee detailing the alleged default. Termination by Franchisee is effective 10 days after Crave Cookies Franchising receives written notice of termination. Detailed information is in Attachment 4 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee can terminate the franchise agreement only if Crave Cookies violates a material provision of the agreement. The franchisee must provide written notice to Crave Cookies detailing the alleged default. Crave Cookies then has 30 days to either cure the violation or make substantial progress toward curing it.
If Crave Cookies fails to cure the violation or make substantial progress within the 30-day period, the franchisee can then terminate the agreement. The termination becomes effective 10 days after Crave Cookies receives the written notice of termination from the franchisee. This process ensures that franchisees have a recourse if Crave Cookies fails to uphold its end of the agreement, but it also provides Crave Cookies with an opportunity to rectify any issues before termination occurs.
It is important for prospective franchisees to understand the specific conditions under which they can terminate the agreement, as outlined in the FDD and the franchise agreement itself. Franchisees should also be aware of the potential financial and legal consequences of terminating the agreement, including potential liquidated damages as described in Section 14.5 of the franchise agreement.