Can Crave engage in a private placement of securities?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "CRAVE Franchising, LLC" as Franchisor. Nothing contained in this Agreement shall require us to remain in the food service business or to offer the same products and services, whether or not bearing the Marks, in the event that we exercise our right to assign our rights in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to engage in a private placement of some or all of its securities. This means that Crave can sell its company stock to private investors without making it available to the general public.
This action could have implications for franchisees. For example, if Crave raises a significant amount of capital through a private placement, it could use those funds to invest in new technologies, marketing initiatives, or other programs that could benefit franchisees. Alternatively, a private placement could dilute the ownership of existing shareholders, which could lead to changes in the company's management or strategic direction.
It is important for prospective franchisees to understand that Crave also has the right to sell its assets, its rights to the Marks or to the System outright to a third party; may go public; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring. With any of these actions, the franchisee expressly and specifically waives any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "CRAVE Franchising, LLC" as Franchisor.