What agreement must the transferee enter into for a Crave franchise transfer?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
edit rating; transferee's aptitude and ability to conduct the business franchised herein (as may be evidenced by prior related business experience or otherwise); transferee's financial resources and capital for operation of the business; and the geographic proximity and number of other Franchised Businesses owned or operated by transferee;
(e) The transferee shall enter into a written agreement, in a form reasonably satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants and agreements contained in this Agreement; and, if transferee is a corporation or a partnership, transferee's shareholders, partners or other investors, as applicable, shall execute such agreement as transferee's principals and guarantee the performance of all such obligations, covenants and agreements;
(f) The transferee shall execute, for a term ending on the expiration date of this Agreement and with such successor terms as may be provided by this Agreement, the standard form franchise agreement then being offered to new System franchisees and other ancillary agreements as we may require for the Franchised Business, which agreements shall supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, the then-current Royalty Fee and Brand Development Fee (as applicable); provided, however, that the transferee shall not be required to pay any initial franchise fee;
(g) The transferee, at its expense, shall renovate, modernize and otherwise upgrade the Franchised Business and, if applicable, any delivery vehicles to conform to the then-current standards and specifications of the System, and shall complete the upgrading and other requirements which conform to the System-wide standards within the time period reasonably specified by us;
(h) The transferor shall remain liable for all of the obligations to us in connection with the Franchised Business incurred prior to the effective date of the transfer and shall execute any and all instruments reasonably requested by us to evidence such liability;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a transferee must enter into a written agreement that is satisfactory to Crave. This agreement requires the transferee to assume full, unconditional, joint, and several liability for all obligations, covenants, and agreements contained in the original franchise agreement from the date of the transfer. If the transferee is a corporation or partnership, its shareholders, partners, or other investors must also execute the agreement as principals, guaranteeing the performance of all obligations.
Additionally, the transferee must execute Crave's standard form franchise agreement, which is offered to new franchisees, for a term ending on the original agreement's expiration date, including any successor terms. This new agreement supersedes the original one and may have different terms, including potentially different royalty and brand development fees. However, the transferee is not required to pay an initial franchise fee.
Furthermore, the transferee is responsible for renovating, modernizing, and upgrading the franchised business and any delivery vehicles to meet Crave's current system standards and specifications within a timeframe specified by Crave. The transferee, along with their General Manager and other relevant personnel, must also complete any training programs in effect for Crave franchisees, under terms and conditions set by Crave. Before the transfer can be approved, the transferor must pay Crave a $5,000 transfer fee to cover the costs of reviewing the application, including training, legal, and accounting fees.