If a Crave franchisee defaults, what does Crave have a lien against?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Crave business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, software accounts, and use telephone listings linked to the Crave brand.
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;
NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions
All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
2. Internet Advertising and Telephone Accounts
- 2.1 Interest in Websites, Social Media, and Software Accounts and Other Electronic Listings. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, software accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.
- 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, upon termination of the Franchise Agreement, Crave has rights regarding the franchisee's internet advertising and telephone accounts. Specifically, Crave may lay claim to the franchisee's rights, title, and interest in domain names, social media accounts, software accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines related to the Franchised Business or the Marks, which are collectively termed "Electronic Advertising."
Additionally, Crave may claim rights to the franchisee's telephone numbers and regular, classified, internet page, and other telephone directory listings related to the Franchised Business or the Marks, which are collectively termed the "Telephone Listings." This indicates that Crave aims to maintain control over the online presence and contact information associated with the Crave brand, even after a franchise agreement ends.
Upon termination of the Franchise Agreement, or on periodic request of Crave, the franchisee must immediately transfer Electronic Advertising and Telephone Listings to Crave. This ensures that Crave can maintain a consistent brand identity and customer reach, regardless of individual franchisee performance or termination. This is a fairly standard practice in franchising, as franchisors need to protect their brand and trademarks.