factual

Does the Crave franchise agreement grant rights or remedies to any third-party person or legal entity not explicitly listed in the agreement?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

| | | | | | with its principal place of business at 159 N. Wolcott St. Suite 133 Casper, WY 82601 | | | | (the "Franchisor"), | | and | , a(n) | | , with its principal place of | | | business located at | | , and | | 's | | principal(s), | | , an individual, residing at | | | | , and | | , an individual, residing at | | | | ("Principal(s)"). | | and Principal(s) shall be individually and collectively referred to | | as, and each | | is, the "Franchisee". | | | | |

WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Crave business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, software accounts, and use telephone listings linked to the Crave brand.

WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;

NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Definitions

All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.

2. Internet Advertising and Telephone Accounts

  • 2.1 Interest in Websites, Social Media, and Software Accounts and Other Electronic Listings. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, software accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.

  • 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.

  • 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:

  • 2.3.1 direct all internet service providers, domain name registries, internet search engines, social media and software companies, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Electronic Advertising and Telephone Listings: (i) to transfer all of Franchisee's interest in such Electronic Advertising and Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Electronic Advertising and Telephone Listings, Franchisee will immediately direct the Internet Companies to terminate such Electronic Advertising and Telephone Listings or will take such other actions with respect to the Electronic Advertising and Telephone Listings as Franchisor directs; and

  • 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.

  • 2.4 Appointment; Power of Attorney.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

Based on the 2025 Crave Franchise Disclosure Document, the franchise agreement does address third-party rights in specific contexts. The agreement stipulates that upon the termination of the Franchise Agreement, or when Crave requests, the franchisee must transfer any rights, titles, or interests in domain names, social media accounts, software accounts, and telephone listings related to the franchised business or the Crave brand. This indicates that while the franchisee may manage these digital assets, Crave retains the right to reclaim them, effectively granting Crave (as a third-party in this context) certain rights related to these assets.

Additionally, the FDD states that Crave can sell its assets, rights to the Marks, or the System to a third party, go public, engage in private placements, merge, acquire or be acquired by another corporation, or undergo financial restructuring. In such events, the franchisee expressly waives any claims related to the loss of the Marks or association with "CRAVE Franchising, LLC". This clause protects third parties who may acquire Crave or its assets from potential legal actions by franchisees.

Furthermore, the document highlights that a Covenantor (likely an employee or someone with access to Crave's confidential information) acknowledges that the execution of a Confidentiality and Non-Compete Agreement is a condition for granting rights in the Franchise Agreement to the franchisee. This agreement ensures that the Covenantor protects Crave's confidential information and the System against unfair competition, thereby providing Crave with rights and remedies against the Covenantor, who is not a direct party to the Franchise Agreement itself. These provisions collectively demonstrate that the Crave franchise agreement does contemplate and address rights and remedies involving third parties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.