Under what conditions would a prospective franchisee of Crave Cookies sign a Multi-Unit Development Agreement (MUDA)?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
due to circumstances beyond your control.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the exclusive right (unless stated otherwise) to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule in a mutually-agreed territory. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crave Cookies business, (3) you must be in compliance with all brand requirements at your open Crave Cookies business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Options to Acquire Additional Franchises
You do not receive any options, rights of first refusal, or similar rights to acquire additional franchises.
Territory Protection
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Crave Cookies outlet, except for restaurants located in limited access venues or non-traditional outlet. A limited access venues are venues that serve primarily the customers located within a facility, such as enclosed shopping centers, universities, churches and other religious institutions, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes and restricted business complexes. A limited access venue may require an entrance ticket or special permission for a person to be present in a venue.
If your franchise is located in a "limited access venue", then your territory will consist of the venue.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a prospective franchisee would sign a Multi-Unit Development Agreement (MUDA) if they and Crave Cookies agree that the franchisee will develop multiple franchises. The MUDA, included as Exhibit C to the FDD, commits the franchisee to developing multiple Crave Cookies locations on an agreed-upon schedule. For each additional location, the franchisee must sign Crave Cookies' then-current form of Franchise Agreement, which may differ from the version included in the FDD.
Under the MUDA, the franchisee will have the exclusive right (unless stated otherwise) to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule in a mutually-agreed territory. The right to develop additional outlets is subject to several conditions: compliance with the development schedule, sufficient financial and organizational capacity to manage each additional Crave Cookies business, compliance with all brand requirements at the open Crave Cookies businesses, and not being in default under any other agreement with Crave Cookies. Crave Cookies will approve the location of future sites and territories, applying their then-current standards.
The franchisee is not obligated to develop additional outlets under the MUDA and can terminate it at any time without penalty. However, Crave Cookies has the right to terminate the franchisee's right to develop additional outlets if the development schedule in the MUDA is not met. Upon execution of the MUDA, the franchisee must pay the total Initial Franchise Fee for the first location. Each additional location listed on the MUDA can be reserved with a deposit of $5000, with the balance due at the time of lease signing. The initial franchise fee for the first unit is $39,500, but is reduced to $26,000 for the second and each additional franchise. All franchise fees are paid upon signing the MUDA and are non-refundable.