Does Crave's consent to a transfer constitute a waiver of any claims against the transferring party?

According to Crave's 2025 Franchise Disclosure Document, Crave's consent to a transfer does not constitute a waiver of any claims it may have against the transferring party. Additionally, Crave's consent does not waive its right to demand full compliance with the terms of the agreement by the transferee. This means that even if Crave approves a transfer of the franchise to a new owner, it retains all rights to pursue any existing claims against the original franchisee.

This provision protects Crave by ensuring that it does not lose any legal recourse it might have against a franchisee simply because the franchise is transferred to someone else. It also ensures that the new franchisee is held to the same standards and obligations as the original franchisee.

For a prospective Crave franchisee, this means that they remain liable for any breaches of the franchise agreement, even after they sell or transfer their franchise. It is crucial to resolve any outstanding issues or disputes with Crave before initiating a transfer to avoid potential future liabilities. The franchisee should also ensure that the transferee understands and agrees to comply with all terms of the franchise agreement, as Crave will still demand full compliance from the new owner.