What action is a Crave franchisee required to take to effect the transfer of assets to Crave upon termination of the franchise agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
2.3.1 direct all internet service providers, domain name registries, internet search engines, social medi
Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:
2.4.1 Direct the Internet Companies to transfer all Franchisee's interest in and to the Electronic Advertising and Telephone Listings to Franchisor, or alternatively, to direct the Internet Companies to terminate any or all of the Electronic Advertising and Telephone Listings;
2.4.2 Direct the Telephone Companies to transfer all Franchisee's interest in and to the Telephone Listings to Franchisor, or alternatively, to direct the Telephone Companies to terminate any or all of the Telephone Listings; and
2.4.3 Execute such standard assignment forms or other documents as the Internet Companies and/or Telephone Companies may require in order to affect such transfers or terminations of Franchisee's interest.
2.5 Certification of Termination.
Franchisee hereby directs the Internet Companies and Telephone Companies to accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.
- 2.6 Cessation of Obligations.
After the Internet Companies and the Telephone Companies have duly transferred all Franchisee's interests as described in paragraph 2.3 above to Franchisor, as between Franchisee and Franchisor, Franchisee will have no further interest in, or obligations with respect to the particular Electronic Advertising and/or Telephone Listing. Notwithstanding the foregoing, Franchisee will remain liable to each and all of the Internet Companies and Telephone Companies for the respective sums Franchisee is obligated to pay to them for obligations Franchisee incurred before the date Franchisor duly accepted the transfer of such interests, or for any other obligations not subject to the Franchise Agreement or this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee is required to transfer certain assets to Crave. Specifically, the franchisee must immediately transfer all rights, titles, and interests in domain names, social media accounts, software accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks. The franchisee must also transfer all rights, titles, and interests in telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
To facilitate this transfer, Crave has the power and right to direct internet companies to transfer all of the franchisee's interest in the Electronic Advertising and Telephone Listings to Crave, or alternatively, to direct the internet companies to terminate any or all of the Electronic Advertising and Telephone Listings. Crave can also direct telephone companies to transfer all of the franchisee's interest in the Telephone Listings to Crave, or alternatively, to direct the telephone companies to terminate any or all of the Telephone Listings. The franchisee is also required to execute standard assignment forms or other documents as the internet companies and/or telephone companies may require in order to affect such transfers or terminations of the franchisee's interest.
Crave's written statement, signed by an officer or agent of Crave, will be accepted by internet and telephone companies as conclusive proof of the termination of the Franchise Agreement. After the internet companies and the telephone companies have duly transferred all the franchisee's interests, the franchisee will have no further interest in, or obligations with respect to the particular Electronic Advertising and/or Telephone Listing, as between the franchisee and Crave. However, the franchisee will remain liable to each and all of the internet companies and telephone companies for the respective sums the franchisee is obligated to pay to them for obligations the franchisee incurred before the date Crave duly accepted the transfer of such interests, or for any other obligations not subject to the Franchise Agreement or this Agreement.