What must happen before any assignment or transfer permitted by Section 11 of the Crave Development Agreement becomes effective?

According to Crave's 2025 Franchise Disclosure Document, any assignment or transfer permitted under Section 11 of the Development Agreement will only become effective once Crave receives a completely executed copy of all transfer documents and provides written consent to the transfer. This means a franchisee cannot simply transfer their rights; Crave must be formally notified and approve the transfer in writing.

Crave's requirement for written consent gives them control over who becomes a multi-unit developer within their system. This protects the brand by ensuring that any new developer meets Crave's standards. Without this clause, a franchisee could transfer their development rights to an unqualified party, which could negatively impact the brand's reputation and future growth.

This requirement is typical in franchising, as franchisors need to maintain standards and ensure that new franchisees or developers are capable of upholding the brand's image and operational requirements. Prospective Crave franchisees should carefully review Section 11 of the Development Agreement to fully understand the conditions under which a transfer may be permitted and the steps required to obtain Crave's consent.