Does Crave consider the personal character of the franchisee when granting rights under the franchise agreement?
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, the franchisor does consider the personal character of the franchisee when granting rights under the franchise agreement. Specifically, the document states that the rights and duties outlined in the agreement are personal to the franchisee. Crave grants these rights based on their reliance on the franchisee's business skills, financial capacity, and personal character, as well as the character of their principals.
This means that Crave places significant importance on who they are franchising with, not just their financial ability to invest in the franchise. This emphasis on personal character suggests that Crave is looking for franchisees who align with their brand values and are likely to operate the business in a way that upholds their standards.
For a prospective franchisee, this highlights the importance of presenting themselves as a trustworthy and capable individual during the application process. It's not just about having the necessary funds; Crave wants to ensure that franchisees possess the right qualities to successfully represent their brand. This could involve background checks, interviews, and a thorough assessment of the franchisee's past business experience and reputation. Furthermore, any transfer of the franchise is contingent upon Crave's approval, ensuring that the new owner also meets their standards for business skill, financial capacity, and personal character.