What documents must a franchisee deliver to Crave or its assignee at the closing of the purchase of the franchised business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) The transferee shall enter into a written agreement, in a form reasonably satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants and agreements contained in this Agreement; and, if transferee is a corporation or a partnership, transferee's shareholders, partners or other investors, as applicable, shall execute such agreement as transferee's principals and guarantee the performance of all such obligations, covenants and agreements;
(f) The transferee shall execute, for a term ending on the expiration date of this Agreement and with such successor terms as may be provided by this Agreement, the standard form franchise agreement then being offered to new System franchisees and other ancillary agreements as we may require for the Franchised Business, which agreements shall supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, the then-current Royalty Fee and Brand Development Fee (as applicable); provided, however, that the transferee shall not be required to pay any initial franchise fee;
(g) The transferee, at its expense, shall renovate, modernize and otherwise upgrade the Franchised Business and, if applicable, any delivery vehicles to conform to the then-current standards and specifications of the System, and shall complete the upgrading and other requirements which conform to the System-wide standards within the time period reasonably specified by us;
(h) The transferor shall remain liable for all of the obligations to us in connection with the Franchised Business incurred prior to the effective date of the transfer and shall execute any and all instruments reasonably requested by us to evidence such liability;
(i) At the transferee's expense, the transferee, the transferee's General Manager and/or any other applicable Franchised Business personnel shall complete any training programs then in effect for franchisees of Crave businesses upon such terms and conditions as we may reasonably require;
(j) When you submit your request for our approval of the transfer, you shall pay to us a transfer fee equal to Five Thousand
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must ensure the transferee fulfills several obligations. The transferee must enter into a written agreement, satisfactory to Crave, assuming full liability for all obligations within the existing Franchise Agreement from the transfer date. If the transferee is a corporation or partnership, its principals must also guarantee these obligations.
Additionally, the transferee must execute Crave's standard franchise agreement for new franchisees, which will run for the remainder of the original agreement's term, including any successor terms. This new agreement supersedes the original and may have different terms, including royalty and brand development fees. However, the transferee is not required to pay an initial franchise fee.
The transferee is also responsible for renovating and upgrading the franchised business to meet Crave's current system standards within a timeframe specified by Crave. The transferor remains liable for all obligations incurred before the transfer date and must provide any documentation Crave reasonably requests to evidence this liability. Finally, the transferee, their General Manager, and any relevant personnel must complete Crave's training programs under terms and conditions set by Crave. The franchisee must also pay Crave a transfer fee of $5,000 upon submitting the transfer request.