What franchise agreement does the transferee execute for a Crave franchise, and how does it relate to the original agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) The transferee shall enter into a written agreement, in a form reasonably satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants and agreements contained in this Agreement; and, if transferee is a corporation or a partnership, transferee's shareholders, partners or other investors, as applicable, shall execute such agreement as transferee's principals and guarantee the performance of all such obligations, covenants and agreements;
(f) The transferee shall execute, for a term ending on the expiration date of this Agreement and with such successor terms as may be provided by this Agreement, the standard form franchise agreement then being offered to new System franchisees and other ancillary agreements as we may require for the Franchised Business, which agreements shall supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, the then-current Royalty Fee and Brand Development Fee (as applicable); provided, however, that the transferee shall not be required to pay any initial franchise fee;
(g) The transferee, at its expense, shall renovate, modernize and otherwise upgrade the Franchised Business and, if applicable, any delivery vehicles to conform to the then-current standards and specifications of the System, and shall complete the upgrading and other requirements which conform to the System-wide standards within the time period reasonably specified by us;
(h) The transferor shall remain liable for all of the obligations to us in connection with the Franchised Business incurred prior to the effective date of the transfer and shall execute any and all instruments reasonably requested by us to evidence such liability;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a transferee (the person buying an existing franchise) must execute a written agreement to assume the obligations of the original franchise agreement. This means the transferee becomes fully liable for all the terms and conditions of the original agreement from the date of transfer. If the transferee is a corporation or partnership, its shareholders or partners must also guarantee the performance of these obligations.
In addition to assuming the original agreement, the transferee must also execute Crave's standard franchise agreement that is being offered to new franchisees at the time of the transfer. This new agreement will have a term ending on the expiration date of the original agreement, including any successor terms provided by the original agreement. This new agreement supersedes the original agreement and any related documents in all respects.
It's important to note that the terms of the new franchise agreement may differ from the original agreement. These differences can include, but are not limited to, the then-current Royalty Fee and Brand Development Fee. However, the transferee is not required to pay an initial franchise fee. The transferee is also responsible for renovating and upgrading the Franchised Business to meet Crave's current standards and specifications within a timeframe specified by Crave. The original transferor remains liable for all obligations incurred before the transfer date.