If a Crave franchisee or principal desires to transfer their interest, what fee must be paid to Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
onably requested by us to evidence such liability;
- (i) At the transferee's expense, the transferee, the transferee's General Manager and/or any other applicable Franchised Business personnel shall complete any training programs then in effect for franchisees of Crave businesse
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave FDD, a franchisee must pay a transfer fee of $5,000 when submitting a request for Crave's approval to transfer their interest in the franchise. This fee is intended to reimburse Crave for expenses related to reviewing the transfer application. These expenses include training, legal, and accounting fees.
This transfer fee is a standard practice in franchising, as the franchisor needs to vet potential new franchisees to ensure they meet the brand's standards and are capable of running the business successfully. The $5,000 fee helps Crave cover the costs associated with this process.
It is important to note that this fee is just one aspect of the transfer process. The FDD outlines other conditions that must be met for a transfer to be approved, such as the transferee meeting Crave's criteria for new franchisees and agreeing to the terms of the current franchise agreement. Franchisees should carefully review all requirements and consult with Crave to ensure a smooth transfer process.