Can the Crave franchisor direct Internet Companies to transfer the franchisee's interest in Electronic Advertising and Telephone Listings?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3.1 direct all internet service providers, domain name registries, internet search engines, social media and software companies, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Electronic Advertising and Telephone Listings: (i) to transfer all of Franchisee's interest in such Electronic Advertising and Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Electronic Advertising and Telephone Listings, Franchisee will immediately direct the Internet Companies to terminate such Electronic Advertising and Telephone Listings or will take such other actions with respect to the Electronic Advertising and Telephone Listings as Franchisor directs; and
- 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
- 2.4 Appointment; Power of Attorney.
Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement.
Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including without limitation this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, upon termination of the franchise agreement or even during the term at the franchisor's request, Crave franchisees are obligated to transfer their interests in electronic advertising and telephone listings to the franchisor. This includes domain names, social media accounts, software accounts, telephone numbers, and directory listings related to the franchised business or the Crave brand.
Crave has the authority to directly instruct Internet Companies and Telephone Companies to transfer the franchisee's interests in these listings to Crave. Alternatively, Crave can direct these companies to terminate the listings altogether. To facilitate this process, the franchisee grants Crave a power of attorney, allowing Crave to execute any necessary documents for the transfer or termination of these listings. This power of attorney is irrevocable until the franchisee fulfills all obligations under the franchise agreement.
After the transfer of the franchisee's interests to Crave, the franchisee relinquishes any further interest in or obligations related to the specific electronic advertising or telephone listings. However, the franchisee remains responsible for any outstanding payments owed to the Internet Companies or Telephone Companies for obligations incurred before the transfer date, or for any other obligations not covered by the franchise agreement. This ensures a clean transfer of digital assets and customer contact points back to Crave, allowing for brand consistency and control after a franchise relationship ends.