In the event of a default by a Crave franchisee, does the obligation to pay damages, costs, and expenses, including reasonable attorneys' fees, give rise to a lien, and if so, until when does that lien remain in effect?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Principals shall promptly pay all sums owing to us. Such sums shall include all damages, costs and expenses, including reasonable attorneys' fees, incurred by us as a result of any default by you, which obligation shall give rise to and remain, until paid in full, a lien in our favor against any and all of the personal property, furnishings, equipment, fixtures, and inventory owned by you and on the premises operated hereunder at the time of default.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee defaults, they are obligated to pay all resulting damages, costs, and expenses, including reasonable attorneys' fees, incurred by Crave. This obligation creates a lien in Crave's favor.
This lien specifically applies to all personal property, furnishings, equipment, fixtures, and inventory owned by the franchisee. It also extends to items located on the premises operated under the franchise agreement at the time of the default.
The lien remains in effect until all outstanding sums owed to Crave are paid in full. This means that Crave has a legal claim on the franchisee's specified assets until the debt is completely settled.