Where can I find the description of direct and indirect ownership interests in the Crave 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 stipulations regarding the transfer of direct and indirect ownership interests are detailed in Section 14.2 of the franchise agreement. Specifically, it states that the rights and duties outlined in the agreement are personal to the franchisee and the franchisor has granted these rights based on the franchisee's business skill, financial capacity, and personal character.
Therefore, franchisees or any principals are restricted from selling, assigning, transferring, or encumbering any direct or indirect interest in the franchise, the agreement, the franchised business, or its material assets without obtaining prior written consent from Crave. This restriction includes actions by operation of law, such as those occurring under bankruptcy or insolvency laws, or in connection with a merger or divorce.
Any transfer or assignment that violates these terms is considered void and constitutes a material breach of the franchise agreement. If a franchisee wishes to transfer any interest in the franchised business, its assets, or the agreement itself, they must adhere to the conditions set forth by Crave.