Does Crave consider the geographic proximity and number of other Franchised Businesses owned or operated by the transferee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
However, no assignment will be made except to an assignee who in good faith and judgment of the franchisor, is willing and financially able to assume the franchisor's obligations under the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, when a franchisee seeks to assign their franchise agreement to a new party, Crave assesses whether the proposed assignee is willing and financially able to fulfill the obligations under the Franchise Agreement. However, the FDD does not explicitly state that Crave considers the geographic proximity or number of other Crave Franchised Businesses owned or operated by the transferee during the transfer approval process.
While the FDD does not directly address the geographic proximity and number of existing franchises owned by a potential transferee, Crave retains significant discretion in approving franchise transfers. This discretion allows Crave to potentially consider these factors as part of their overall assessment of the assignee's suitability.
A prospective franchisee should directly ask Crave about the specific criteria used to evaluate potential transferees, including whether geographic proximity and existing franchise ownership are considered. Understanding these criteria is crucial for franchisees planning to eventually sell or transfer their Crave franchise.