What must a Crave franchisee partnership or limited liability company's written agreement provide regarding ownership interests?

According to Crave's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the Franchised Business and the franchisee is a corporation or partnership, the transferee's shareholders, partners, or other investors must enter into a written agreement. This agreement, in a form reasonably satisfactory to Crave, must assume full, unconditional, joint, and several liability for all obligations, covenants, and agreements contained in the Franchise Agreement from the date of the transfer.

Furthermore, the shareholders, partners, or other investors must execute the agreement as principals, guaranteeing the performance of all such obligations, covenants, and agreements. This requirement ensures that Crave has recourse to the individuals behind the corporate or partnership franchisee, providing an additional layer of security for the franchisor.

This provision is typical in franchising, as franchisors want to ensure that the financial and operational responsibilities are clearly assigned and guaranteed, especially when dealing with business entities rather than individual franchisees. It protects Crave's interests by holding the principals of the transferee entity accountable for the franchise's performance and adherence to the franchise agreement.