Who must execute the general release of claims for a Crave franchise transfer?

According to Crave's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must execute a general release of claims against Crave. Specifically, the franchisee must release Crave, its officers, directors, employees, and principal stockholders from any claims and causes of action related to the Franchise Agreement or its performance. This release must be in a form satisfactory to Crave.

This requirement means that as part of the transfer process, the franchisee gives up the right to sue Crave for any reason related to the franchise agreement, except for claims arising from representations made by Crave in the Franchise Disclosure Document provided to the transferee. This is a standard practice in franchising, as it protects the franchisor from potential future litigation by the transferring franchisee.

Additionally, the franchisee agrees to subordinate any claims they may have against the transferee to Crave and indemnify Crave against any claims by the transferee relating to misrepresentations in the transfer process, excluding those representations made by Crave in the Franchise Disclosure Document given to the transferee. This protects Crave from disputes between the transferring franchisee and the new franchisee.

Prospective franchisees should carefully consider the implications of this release, as it could limit their legal recourse against Crave in the future. It is advisable to consult with an attorney to fully understand the scope and impact of the general release before proceeding with a franchise transfer.