What is the consequence if a Crave franchisee attempts to transfer the agreement without Crave's consent?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2.1 You understand and acknowledge that the rights and duties set forth in this Agreement are personal to you, and that we have granted rights under this Agreement in reliance on the business skill, financial capacity and personal character of you and the Principals. Accordingly, neither you nor any Principal shall sell, assign (including but not limited to by operation of law, such as an assignment under bankruptcy or insolvency laws, in connection with a merger, divorce or otherwise), transfer, convey, give away, pledge, mortgage or otherwise encumber any direct or indirect interest in you, in this Agreement, in the Franchised Business and/or any of the Franchised Business' material assets (other than in connection with replacing, upgrading or otherwise dealing with such assets as required or permitted by this Agreement), without our prior written consent. Any purported assignment or transfer, by operation of law or otherwise, made in violation of this Agreement shall be null and void and shall constitute a material event of default under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee attempts to transfer any direct or indirect interest in the franchise, the Franchise Agreement, or the Franchised Business's material assets without Crave's prior written consent, that transfer will be considered invalid. Specifically, any such action, whether it occurs through legal means or otherwise, will be deemed null and void.
Furthermore, such an unapproved transfer constitutes a significant breach of the Franchise Agreement. This means that the franchisee would be in default of their contractual obligations to Crave.
This provision underscores the importance Crave places on controlling who operates its franchises. Prospective franchisees should understand that they cannot freely sell or transfer their business without first obtaining approval from Crave, and failure to do so can have serious consequences, including termination of the franchise agreement.