Does the Crave franchise agreement place any limitations on Crave's right to require franchisees to obtain computer upgrades?
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)
Based on the 2025 Crave Franchise Disclosure Document, there is no specific section that explicitly limits Crave's right to require franchisees to obtain computer upgrades. However, Section 14.2.1 touches on the franchisee's ability to deal with assets.
According to Section 14.2.1, franchisees can replace, upgrade, or otherwise deal with the Franchised Business' material assets as required or permitted by the agreement without needing prior written consent from Crave. This implies that franchisees have some autonomy in managing their assets, including computer systems, as long as it aligns with the agreement's requirements.
Prospective franchisees should seek clarification from Crave regarding the circumstances under which computer upgrades may be mandated, the expected costs, and the criteria used to determine the necessity of such upgrades. Understanding these aspects will help franchisees plan their investments and manage their business operations effectively.