What happens if the transferee of a Crave franchise does not meet the criteria considered by Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee shall demonstrate to our reasonable satisfaction that transferee meets the criteria considered by us when reviewing a prospective franchisee's application for a franchise, including, but not limited to, our educational, managerial and business standards; transferee's good moral character, business reputation and credit rating; transferee's aptitude and ability to conduct the business franchised herein (as may be evidenced by prior related business experience or otherwise); transferee's financial resources and capital for operation of the business; and the geographic proximity and number of other Franchised Businesses owned or operated by transferee;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a prospective transferee does not meet Crave's criteria for a new franchisee, the transfer will not be approved. Crave assesses various factors, including educational, managerial, and business standards. They also consider the transferee's moral character, business reputation, credit rating, aptitude, and ability to manage the franchised business. Financial resources, capital, and the proximity/number of other Crave businesses the transferee owns are also taken into account.
This means that if you, as a Crave franchisee, wish to sell your franchise, the potential buyer must satisfy Crave's standards. This protects the Crave brand by ensuring that new operators are qualified.
Crave does state that they will not unreasonably withhold consent to a restricted transfer. However, the transferee must still meet the criteria that Crave considers when reviewing a prospective franchisee's application.