What is the condition regarding the transferee's compliance with the terms of the Crave franchise agreement?
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;
(i) At the transferee's expense, the transferee, the transferee's General Manager and/or any other applicable Franchised Business personnel shall complete any training programs then in effect for franchisees of Crave businesse
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a key condition for transferring a franchise is that the transferee must fully comply with the terms of the franchise agreement. Specifically, the transferee is required to enter into a written agreement that is satisfactory to Crave, assuming full, unconditional, joint, and several liability for all obligations outlined in the original franchise agreement from the date of transfer. This means the new franchisee takes on all responsibilities and liabilities as if they were the original franchisee.
If the transferee is a corporation or partnership, the agreement must also be executed by the transferee's shareholders, partners, or other investors, who will act as principals and guarantee the performance of all obligations. This ensures that the franchisor has recourse to the individuals behind the entity, adding an extra layer of security. The transferee must also execute the standard form franchise agreement then being offered to new Crave franchisees, which will supersede the original agreement.
Furthermore, the transferee is responsible for renovating, modernizing, and upgrading the franchised business to meet the current standards of the Crave system within a timeframe specified by Crave. The transferee, along with their General Manager and other personnel, must complete any training programs in effect for franchisees. These stipulations ensure that the Crave franchise maintains its brand standards and operational consistency under new ownership.
Finally, the transferor (original franchisee) remains liable for all obligations incurred prior to the transfer date and must execute any instruments requested by Crave to evidence this liability. The transferee must also pay a $5,000 transfer fee to cover Crave's costs for reviewing the transfer application, including training, legal, and accounting fees. These conditions collectively aim to protect Crave's interests and ensure a smooth transition while maintaining the integrity of the franchise system.