What instruments must the transferor execute to evidence liability for a Crave franchise transfer?

According to Crave's 2025 Franchise Disclosure Document, a transferor—the existing franchisee selling their business—must execute specific instruments to evidence their liability for obligations incurred before the transfer. Specifically, the transferor must execute any and all instruments reasonably requested by Crave to demonstrate their responsibility for obligations related to the franchised business that occurred prior to the effective date of the transfer.

This requirement ensures that Crave retains recourse against the original franchisee for any outstanding debts or liabilities accrued during their operation of the franchise. It protects Crave from potential financial losses or legal issues stemming from the previous franchisee's actions or inactions. The franchisor has the power to request any document they deem reasonably necessary to evidence the transferor's liability.

For a prospective franchisee, this means that if they are considering selling their Crave franchise, they will remain responsible for any outstanding obligations to Crave incurred up to the date of the transfer. They should maintain thorough records of all transactions and communications with Crave to ensure a smooth transfer process and avoid potential disputes over liabilities. It is also important to seek legal counsel to review the transfer agreement and ensure they understand the full extent of their remaining obligations.

Furthermore, the transferor must also execute a general release, in a form satisfactory to Crave, of any and all claims against Crave, its officers, directors, employees, and principal stockholders. This release covers any claims and causes of action that the transferor may have against Crave or its affiliated corporations relating to the Franchise Agreement or its performance. This requirement protects Crave from potential legal action by the transferor after the transfer is completed.