What conditions must a Crave franchisee meet to gain franchisor approval for a transfer of the franchise?

According to Crave's 2025 Franchise Disclosure Document, a franchisee needs to meet certain conditions to get approval from Crave for a franchise transfer. These conditions include paying all outstanding amounts owed to Crave or its affiliates and not being in default of the franchise agreement. The franchisee must also sign a general release, which typically means releasing Crave from any potential future claims or liabilities related to the franchise. Additionally, a transfer fee must be paid to Crave.

The individual or entity to whom the franchise is being transferred (the transferee) must also meet Crave's criteria for new franchisees. This often includes a review of their financial stability, business experience, and overall suitability as a Crave franchisee. The transferee must also complete Crave's training program to the franchisor's satisfaction, ensuring they are properly equipped to operate the franchise according to Crave's standards. Finally, the transferee is required to sign the current version of Crave's Franchise Agreement, which may have different terms and conditions than the original agreement.

These conditions are fairly standard in the franchise industry, as franchisors like Crave want to ensure that any new franchisee is financially sound, well-trained, and committed to upholding the brand's standards. The transfer fee compensates Crave for the administrative costs associated with the transfer and for the opportunity to evaluate and approve the new franchisee. The right of first refusal allows Crave to maintain control over who joins their franchise system and to potentially acquire successful locations. Prospective franchisees should carefully consider these conditions and factor in the costs and requirements associated with transferring their franchise in the future.