factual

Does Crave's consent to a transfer waive any claims Crave may have against the transferring party?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

14.6 No Waiver of Claims

Our consent to a transfer of any interest described herein shall not constitute a waiver of any claims which we may have against the transferring party, nor shall it be deemed a waiver of our right to demand material and full compliance with any of the terms of this Agreement by the transferee.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, Crave's consent to a transfer does not constitute a waiver of any claims Crave may have against the transferring party. Additionally, Crave's consent does not waive its right to demand full compliance with the Franchise Agreement terms by the transferee.

This means that even if Crave approves a transfer of the franchise to a new owner, Crave retains all rights to pursue any existing claims against the original franchisee (the transferring party). This protects Crave's interests in ensuring compliance with the franchise agreement, regardless of ownership changes.

For a prospective franchisee, this clause highlights the importance of fulfilling all obligations under the Franchise Agreement. Even if planning to sell the franchise, any outstanding debts, breaches of contract, or other claims Crave may have will not be forgiven simply because a transfer is approved. The original franchisee remains liable.

This provision is fairly standard in franchising, as franchisors typically want to preserve their legal rights regardless of changes in franchisee ownership. Franchisees should seek legal counsel to fully understand their obligations and potential liabilities when considering a franchise transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.