What information must a Crave franchisee provide to Crave when notifying them of a third-party offer to purchase the business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
14.4 Our Right to Purchase Business
14.4.1 If you wish to transfer all or part of your interest in the Franchised Business or this Agreement or if you or a Principal wishes to transfer any ownership interest in you, pursuant to any bona fide offer received from a third party to purchase such interest, then such proposed seller shall promptly notify us in writing of each such offer, and shall provide such information and documentation relating to the offer as we may require. We shall have the right and option, exercisable within thirty (30) days after receipt of such written notification and copies of all documentation required by us describing such offer, to send written notice to the seller that we intend to purchase the seller's interest on the same terms and conditions offered by the third party. In the
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the franchised business based on a bona fide offer from a third party, they must promptly notify Crave in writing. This notification must include all information and documentation related to the offer that Crave may require.
Crave has the right to purchase the franchisee's interest on the same terms and conditions as the third-party offer. This right is exercisable within thirty (30) days after Crave receives the written notification and all required documentation describing the offer.
This clause in the franchise agreement allows Crave to maintain control over who becomes a franchisee and prevents unwanted or unqualified individuals from joining the Crave system. It also ensures that Crave has the opportunity to expand its ownership within the franchise network if it chooses.