According to the Crave franchise agreement, what is considered a 'Restricted Transfer'?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2.2 If you wish to transfer all or part of your interest in the Franchised Business, any of the Franchised Business' material assets (except as provided in Section 14.2.1 above) or this Agreement,
or if you or a Principal wishes to transfer or permit a transfer of any ownership interest in you, then in each such case (any or all of which are referred to in this Article 14 as a "Restricted Transfer"), transferor and the proposed transferee shall apply to us for our consent. We shall not unreasonably withhold our consent to a Restricted Transfer. We may, in our sole discretion, require any or all of the following as conditions of our approval:
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a 'Restricted Transfer' occurs when a franchisee wishes to transfer all or part of their interest in the Franchised Business, any of the Franchised Business' material assets, or the Franchise Agreement itself. This also applies if the franchisee or a principal wishes to transfer any ownership interest in the franchisee's business.
Before any such transfer can occur, both the transferor and the proposed transferee must apply to Crave for consent. Crave states that it will not unreasonably withhold consent to a Restricted Transfer but may require certain conditions to be met.
These conditions can include satisfying all accrued monetary obligations, ensuring no defaults exist under any agreements with Crave, obtaining a general release of claims against Crave, and demonstrating that the transferee meets Crave's criteria for new franchisees. This process ensures that any new owner meets Crave's standards and is financially sound, protecting the brand and other franchisees.