What is the condition regarding the assignee's agreement to perform Crave's obligations?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We shall have the right to assign this Agreement and all of our attendant rights and privileges to any person, firm, corporation or other entity provided that, with respect to any assignment resulting in the subsequent performance by the assignee of our functions: (i) the assignee shall, at the time of such assignment, be financially responsible and economically capable of performing our obligations; and (ii) the assignee shall expressly assume and agree to perform such obligations.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if Crave assigns the Franchise Agreement, the assignee must expressly assume and agree to perform Crave's obligations under the agreement. Specifically, the assignee must be financially responsible and economically capable of fulfilling these obligations at the time of the assignment.
This requirement ensures that any entity taking over Crave's responsibilities has the financial stability and willingness to uphold the commitments outlined in the Franchise Agreement. This protects franchisees by ensuring the franchisor's duties will continue to be met by the new entity.
This condition is fairly standard in franchising, as it aims to maintain the integrity of the franchise system and protect the interests of individual franchisees. Prospective Crave franchisees should confirm that this clause is strictly adhered to in any assignment scenario to safeguard their investment and operational expectations.