What does the Crave franchise agreement say about the financial responsibility of an assignee?

According to Crave's 2025 Franchise Disclosure Document, if a franchisee wishes to assign their rights and duties under the Franchise Agreement, the assignee must be willing and financially able to assume the franchisor's obligations. This requirement ensures that any new party taking over the franchise is capable of fulfilling the financial responsibilities associated with operating the Crave business.

This provision protects Crave by ensuring that the assignee has the financial capacity to maintain the brand's standards and meet the financial obligations outlined in the Franchise Agreement. It also means that a franchisee cannot simply transfer their franchise to someone who is not financially sound, which could negatively impact the Crave brand and other franchisees.

For a prospective Crave franchisee, this means that if they ever decide to sell or transfer their franchise, they need to find a buyer who meets Crave's financial criteria. This could potentially limit the pool of potential buyers and might affect the sale price or terms of the transfer. It is a fairly standard practice in franchising to ensure the ongoing financial health and stability of the franchise system.