What is the Crave franchisee waiving regarding claims related to the loss of association with Crave Franchising, LLC?
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 waive any claims, demands, or damages related to the loss of the brand's marks or association with Crave Franchising, LLC, in the event that Crave Franchising, LLC sells its assets, rights to the marks, or the system to a third party. This waiver also applies if Crave goes public, engages in a private placement of securities, merges with or is acquired by another corporation, or undertakes a refinancing, recapitalization, leveraged buyout, or other economic or financial restructuring.
This means that a franchisee cannot sue Crave for any financial losses or damages they incur if the brand is sold or undergoes significant financial changes that result in a loss of brand recognition or association with the original franchisor. This waiver is significant because it protects Crave from potential lawsuits by franchisees who may feel that their investment is devalued due to these types of corporate actions.
It is important to note that this waiver does not obligate Crave to remain in the food service business or to offer the same products and services if they assign their rights in the agreement. This clause highlights the potential risks associated with investing in a franchise, as the brand and its offerings could change significantly if the franchisor is acquired or undergoes major restructuring. Prospective franchisees should carefully consider this waiver and its potential impact on their investment before entering into a franchise agreement with Crave.