Under the Crave Cookies franchise agreement, which sections cover site selection and acquisition/lease obligations?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
5.4 Pre-Opening Assistance.
(a) Selecting Location. Crave Cookies Franchising shall provide its criteria for Crave Cookies locations to Franchisee. Crave Cookies Franchising will review and advise Franchisee regarding potential locations submitted by Franchisee.
Item 12 TERRITORY
Your Location
Your franchise is for a specific location. If the specific location is not known at the time you sign a franchise agreement, then your location is subject to our approval.
Grant of Territory
Your franchise agreement will specify a territory, which will be determined by us. Your territory will typically have a radius of five (5) miles or a population of approximately 75,000-100,000 people, whichever is reached first. Your territory will usually be specified as a radius around your location; however, we may use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area).
Relocation; Establishment of Additional Outlets
You do not have the right to independently relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on a case-by-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises 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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Item 5.4(a) within Article 5.4 addresses site selection. Specifically, Crave Cookies will provide its criteria for locations and will review and advise franchisees on potential locations they submit.
Item 12 outlines the territory specifics for a Crave Cookies franchise. The franchise is for a specific location that is subject to Crave Cookies' approval if not known when the franchise agreement is signed. The territory is typically a five-mile radius or a population of 75,000-100,000, whichever is reached first.
The franchisee does not have the right to independently relocate, and Crave Cookies has no obligation to approve relocation requests. Relocation is considered on a case-by-case basis, considering factors like demographics, profitability, or loss of premises beyond the franchisee's control. Franchisees also cannot establish additional outlets unless they sign a Multi-Unit Development Agreement.