Does the Crave franchise agreement confer any rights or remedies to individuals or entities other than the franchisor, franchisee, and their respective successors and assigns?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. The rights and remedies of Franchisor under this Agreement are fully assignable and transferable and shall inure to the benefit of its respective affiliates, successors and assigns.
- j. The obligations of Covenantor hereunder may not be assigned by Covenantor, without the prior written consent of Franchisor.
BY EXECUTING THE FRANCHISE AGREEMENT, FRANCHISEE AND ANY PRINCIPAL, INDIVIDUALLY AND ON BEHALF OF FRANCHISEE'S AND SUCH PRINCIPAL'S HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS, HEREBY FOREVER RELEASE AND DISCHARGE CRAVE FRANCHISING, LLC AND ANY OF ITS PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, AND SHAREHOLDERS FROM ANY AND ALL CLAIMS, DEMANDS AND JUDGMENTS RELATING TO OR ARISING UNDER THE STATEMENTS, CONDUCT, CLAIMS OR ANY OTHER AGREEMENT BETWEEN THE PARTIES EXECUTED PRIOR TO THE DATE OF THE FRANCHISE AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS, WHETHER PRESENTLY KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, ARISING UNDER THE FRANCHISE, SECURITIES, TAX OR ANTITRUST LAWS OF THE UNITED STATES OR OF ANY STATE OR TERRITORY THEREOF. THIS RELEASE IS SPECIFICALLY INAPPLICABLE TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the rights and remedies of Crave under the Franchise Agreement are fully assignable and transferable. These rights extend to the benefit of Crave's affiliates, successors, and assigns. This means that if Crave were to be acquired or merge with another company, the new entity would inherit all of Crave's rights and remedies under the franchise agreement.
However, the franchisee (referred to as Covenantor in the excerpt) cannot assign their obligations under the agreement without prior written consent from Crave. This protects Crave by ensuring that any new franchisee taking over an existing location meets their standards and is capable of fulfilling the franchise obligations.
Furthermore, by executing the Franchise Agreement, the franchisee and any principal, individually and on behalf of their heirs, legal representatives, successors, and assigns, release and discharge Crave and its parent company, subsidiaries, divisions, affiliates, successors, assigns, and designees, as well as their directors, officers, employees, agents, and shareholders from any claims, demands, and judgments relating to agreements executed prior to the date of the Franchise Agreement. This release does not apply to claims arising from representations made by Crave in its Franchise Disclosure Document received by the franchisee.
In summary, while Crave can freely assign its rights and remedies, the franchisee's ability to do so is restricted, and the agreement includes a broad release of claims against Crave, with specific exceptions for claims arising from the FDD itself. This structure is fairly typical in franchising, designed to protect the franchisor's interests while also providing some protection to the franchisee regarding the accuracy of the information provided in the FDD.