Under the Multi-Unit Commitment for Crave Cookies, what is the franchisee required to do regarding the development and opening of businesses?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Background Statement: On the same day as they execute this MUDA, Crave Cookies Franchising and Franchisee have entered into a Franchise Agreement for the franchise of a Crave Cookies business (the "Franchise Agreement"; capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). Crave Cookies Franchising and Franchisee desire that Franchisee develop multiple Crave Cookies businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Crave Cookies businesses on the following schedule:
(b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Crave Cookies Franchising for the first location. Each additional location listed on the MUDA can be reserved with a deposit of $5000 with balance owing at the time of lease signing, The Initial Franchise Fee and deposits are non-refundable.
2. Form of Agreement. For Store #1, Franchisee and Crave Cookies Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Crave Cookies franchise, Franchisee shall execute Crave Cookies Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Crave Cookies business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Crave Cookies business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Crave Cookies business.
**3.
Development Area.** Franchisee shall locate the first location in the Development Area indicated on the Summary Page of this Franchise Agreement.
Subsequent areas may be opened in any order so long as each Opening Deadline is met in order.
Franchisee acknowledges that it does not have exclusive rights to develop, open or operate Crave Cookies businesses in the Development Area.
- **4.
Default and Termination.** The MUDA is automatically terminated without opportunity for Franchisee to cure, if any of the following occur:
(i) Franchisee fails to satisfy the development schedule; or
(iii) Crave Cookies Franchising has the right to extend opening deadlines.
**6.
Conditions.** Franchisee's right to develop each Crave Cookies franchise after the Store #1 is subject to the following:
(i) Franchisee must possess sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crave Cookies business, in the reasonable judgment of Crave Cookies Franchising, and
(ii) Franchisee must be in full compliance with all brand requirements at its open Crave Cookies businesses, and not in default under any Franchise Agreement or any other agreement with Crave Cookies Franchising.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee entering into a Multi-Unit Development Agreement (MUDA) is obligated to develop and open multiple Crave Cookies businesses according to a specific schedule outlined in the agreement. This schedule is a key component of the MUDA, and failure to adhere to it can result in the termination of the agreement.
For each additional Crave Cookies franchise beyond the first, the franchisee must execute Crave Cookies' then-current standard franchise agreement within three business days of leasing or acquiring a location. The MUDA itself does not grant the franchisee the right to open or operate a Crave Cookies business; this right is conferred only through the separate franchise agreement executed for each location. The franchisee must also pay the total Initial Franchise Fee to Crave Cookies Franchising for the first location upon execution of the MUDA. Each additional location listed on the MUDA can be reserved with a deposit of $5000 with balance owing at the time of lease signing.
The franchisee is required to locate the first Crave Cookies location within the Development Area specified in the Franchise Agreement's Summary Page. While subsequent locations can be opened in any order, each Opening Deadline must be met sequentially. It's important to note that the franchisee does not have exclusive rights to develop, open, or operate Crave Cookies businesses within the Development Area. Crave Cookies Franchising also retains the right to extend opening deadlines. The franchisee must possess sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crave Cookies business, in the reasonable judgment of Crave Cookies Franchising, and be in full compliance with all brand requirements at its open Crave Cookies businesses, and not in default under any Franchise Agreement or any other agreement with Crave Cookies Franchising.