Can a Crave franchise be transferred if the franchisee or its affiliates are in default of any agreement with Crave?

According to Crave's 2025 Franchise Disclosure Document, a franchisee's ability to transfer their franchise is contingent upon not being in default of any agreements with Crave at the time of the proposed transfer. Specifically, if the franchisee or the proposed transferee owes any money to Crave or has failed to correct any existing default in the franchise agreement, the transfer will not be permitted. This condition ensures that Crave maintains financial stability and adherence to the franchise agreement's terms.

This provision is fairly standard in franchising, as franchisors typically want to ensure that any new franchisee or the existing franchisee is in good standing before a transfer is approved. This protects the brand and the interests of other franchisees within the system.

For a prospective Crave franchisee, this means maintaining compliance with all financial and operational requirements outlined in the franchise agreement. Failure to do so could not only jeopardize the current operation of the franchise but also limit the ability to sell or transfer the business in the future. It is crucial to address any defaults promptly to maintain the option of transferring the franchise should the need or opportunity arise.