If Crave assigns the Franchise Agreement, what must the assignee demonstrate?

According to Crave's 2025 Franchise Disclosure Document, if Crave assigns the Franchise Agreement, the assignee must demonstrate that they are willing and financially able to assume Crave's obligations under the Franchise Agreement. This means that any entity to whom Crave transfers its rights and responsibilities must be capable of fulfilling the commitments that Crave originally made to its franchisees.

For a prospective franchisee, this clause provides some assurance that if Crave is sold or its business is transferred, the new entity will be vetted for its willingness and financial capability. This helps to protect the franchisee's investment and ensures that the franchisor's obligations will continue to be met. It is a fairly standard clause in franchise agreements, intended to maintain the integrity of the franchise system even if ownership changes.

However, it's important to note that the FDD does not provide specific details on how 'willing' and 'financially able' are defined or assessed. A prospective franchisee should seek clarification from Crave regarding the specific criteria used to evaluate potential assignees. Understanding these criteria can provide a clearer picture of the standards that any future franchisor would need to meet, offering additional security for the franchisee's investment.