What conditions must be met for Crave to approve a transfer by a multi-unit developer?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi Unit Development Agreement | Summary | |
|---|---|---|---|
| h. | "Cause" defined – non curable defaults | 9 | Failure to meet your minimum performance schedule; failure to comply with applicable laws; if all of your Franchised Businesses stop operating; unauthorized transfer; you make a material misrepresentation to us; conviction by you or your owners of an indictable offense; bankruptcy or insolvency; if a Franchise Agreement with us is terminated according to its terms (this is a cross-default provision) |
| i. | Multi-unit developer's obligations on termination/ non-renewal | 10 | You must stop selecting sites for Franchised Businesses, and you may not open any more Franchised Businesses |
| j. | Assignment of contract by franchisor | 11 | No restriction on our right to assign. However, no assignment will be made except to an assignee who, in our good faith judgment, is willing and able to assume our obligations under the Multi-Unit Development Agreement. |
| k. | "Transfer" by multi-unit developer – defined | 11 | Includes transfer of any interest in the Multi Unit Development Agreement |
| l. | Franchisor approval of transfer by multi-unit developer | 11 | We have the right to approve all transfers, our consent not to be unreasonably withheld |
| m. | Conditions for franchisor approval of transfer | 11 | Conditions for transfer include not being in default, at least 25% of all Franchised Businesses required to be developed are open or under construction, all debts are paid, the buyer meets our current criteria for new Multi Unit Developers, execution of a general release, |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 50–56)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to approve all transfers by multi-unit developers, and Crave's consent will not be unreasonably withheld.
For Crave to approve a transfer, the multi-unit developer must not be in default. Additionally, at least 25% of all Franchised Businesses required to be developed must be open or under construction. All debts must be paid, and the buyer must meet Crave's current criteria for new Multi-Unit Developers.
The multi-unit developer must execute a general release and pay a transfer fee. The buyer must also personally guarantee all obligations.
These conditions ensure that any transfer of the multi-unit development agreement maintains Crave's standards and financial stability, and that the new developer is qualified and committed to fulfilling the development obligations. This protects Crave's interests and the integrity of its franchise system.