If the franchisee owns the Franchised Business premises, does Crave have the option to purchase the premises, including the building?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
18.12.2 In addition to the options described above and if you own the Franchised Business premises, then we shall have the option, to be exercised at or within thirty (30) days after termination or expiration of this Agreement, to purchase the premises, including any building thereon, if applicable, for the fair market value of the land and building, and any or all of the furnishings, equipment, signs, fixtures, vehicles, supplies and inventory therein at fair market value. We shall purchase assets only and shall assume no liabilities whatsoever, unless otherwise agreed to in writing by the parties. If you do not own the land on which the Franchised Business is operated and we exercise our option for an assignment of the lease, we may exercise this option for the purpose of purchasing the building if owned by you and related assets as described above. If the parties cannot agree on fair market value within thirty (30) days of our exercise of this option, fair market value shall be determined in accordance with appraisal procedure described above.
18.12.3 With respect to the options described in Sections 18.11, 18.12.1 and 18.12.2, you shall deliver to us in a form satisfactory to us, such warranties, deeds, releases of lien, bills of sale, assignments and such other documents and instruments which we deem necessary in order to perfect our title and possession in and to the properties being purchased or assigned and to meet the requirements of all tax and government authorities. If, at the time of closing, you have not obtained all of these certificates and other documents, we may, in our sole discretion, place the purchase price in escrow pending issuance of any required certificates or documents.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee owns the premises of their Crave franchise, Crave has the option to purchase the premises, including any buildings on it. This option can be exercised within 30 days after the termination or expiration of the Franchise Agreement. The purchase price will be the fair market value of the land, building, furnishings, equipment, signs, fixtures, vehicles, supplies, and inventory.
Crave will only purchase the assets and will not assume any liabilities unless both parties agree otherwise in writing. If the franchisee does not own the land but owns the building, Crave can still exercise its option to purchase the building and related assets if they exercise their option for an assignment of the lease.
If Crave and the franchisee cannot agree on the fair market value within 30 days of Crave exercising its option, the fair market value will be determined by an appraisal procedure. The franchisee must provide warranties, deeds, releases of lien, bills of sale, assignments, and other necessary documents to perfect Crave's title and possession of the properties. If these documents are not obtained by the closing time, Crave may place the purchase price in escrow until the required certificates or documents are issued.