Does the Crave franchise agreement require Crave to remain in the restaurant business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "CRAVE Franchising, LLC" as Franchisor. Nothing contained in this Agreement shall require us to remain in the restaurant business or to offer the same products and services, whether or not bearing the Marks, in the event that we exercise our right to assign our rights in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchise agreement does not require Crave to remain in the food service business. Crave retains the right to sell its assets, trademarks, or the entire system to a third party. They may also choose to go public, engage in private placements, merge with or be acquired by another corporation, or undertake financial restructuring.
Crave is not obligated to continue offering the same products and services, even those bearing their trademarks, if they decide to assign their rights within the franchise agreement. This provides Crave with significant flexibility in its business operations and future direction.
For a prospective franchisee, this clause signifies that the future direction of the Crave franchise could change significantly if the company is sold or restructured. While this might not be an immediate concern, it's important to recognize that the brand, products, and support systems could evolve under new ownership or management. It is a fairly standard clause to allow flexibility for the Franchisor.