What is the franchisee expressly agreeing to regarding Crave's potential sale of assets?
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 food service 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, franchisees expressly agree to allow Crave to sell its assets, rights to its trademarks, or the entire Crave system to a third party. This includes the possibility of Crave going public, engaging in private placements of securities, merging with or being acquired by another corporation, or undergoing financial restructuring.
As part of this agreement, franchisees specifically waive any claims, demands, or damages that may arise from the loss of the Crave trademarks or the loss of association with Crave Franchising, LLC as the franchisor. This waiver is a significant point for potential franchisees to consider, as it limits their ability to seek compensation if Crave's brand or ownership changes impact their business.
The agreement also clarifies that Crave is not obligated to remain in the food service business or continue offering the same products and services, even those bearing the Crave trademarks, if they choose to assign their rights. This provides Crave with considerable flexibility in its business operations and future direction, regardless of the impact on individual franchisees. Prospective franchisees should carefully evaluate the potential implications of these terms on their investment and business prospects.