Can Crave assign its rights and remedies under the Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. The rights and remedies of Franchisor under this Agreement are fully assignable and transferable and shall inure to the benefit of its respective affiliates, successors and assigns.
- j. The obligations of Covenantor hereunder may not be assigned by Covenantor, without the prior written consent of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to assign its rights and remedies under the Franchise Agreement. Specifically, Crave's rights and remedies are fully assignable and transferable, benefiting its affiliates, successors, and assigns. This means Crave can transfer its rights and remedies to another party without needing the franchisee's consent.
This clause is fairly standard in franchise agreements, allowing Crave flexibility in its business operations. For example, Crave could sell its assets, rights to the marks, or the system outright to a third party. They could also go public, engage in a private placement of securities, merge with or be acquired by another corporation, or undertake financial restructuring.
However, the franchisee's ability to assign their rights is much more restricted. The franchisee cannot assign their obligations without Crave's prior written consent, highlighting the power imbalance inherent in the franchise relationship. This protects Crave's interests by ensuring that any new franchisee meets their standards and obligations. Crave also affirms that they are not required to remain in the food service business or offer the same products and services if they assign their rights in the agreement.