How long after the termination or expiration of the Crave Franchise Agreement does Crave have to exercise its option to purchase furnishings, equipment, signs, and inventory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
18.12.1 Except as provided in Sections 18.9, 18.10 and 18.13, we shall have the option, to be exercised within thirty (30) days after termination or expiration of this Agreement, to purchase from you any or all of the furnishings, equipment (including any point-of-sale or computer hardware and software systems), signs, fixtures, motor vehicles, supplies, and inventory of yours related to the operation of the Franchised Business, at fair market value. If we exercise our right to purchase all or a portion of your assets, we shall be purchasing such assets only and shall be assuming no liabilities whatsoever, unless otherwise agreed to in writing by the parties. If the parties cannot agree on the fair market value within thirty (30) days of our exercise of this option, fair market value shall be determined by two (2) appraisers, with each party selecting one (1) appraiser, and the average of their determinations shall be binding. In the event of such appraisal, each party shall bear its own legal and other costs, and each shall pay one-half (1/2) of the appraisal fees. If we elect to exercise any option to purchase herein provided, we shall have the right to set off (i) all fees for any such independent appraiser due from you, (ii) all amounts due from you to us and (iii) any costs incurred in connection with any escrow arrangement (including reasonable legal fees), against any payment therefor and shall pay the remaining amount in cash.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the option to purchase furnishings, equipment, signs, and inventory from a franchisee within thirty days after the termination or expiration of the Franchise Agreement. This includes items such as point-of-sale systems, computer hardware and software, motor vehicles, and supplies related to the operation of the franchised business.
Crave's decision to exercise this option allows them to maintain control over the assets used within the franchise system, ensuring consistency and potentially facilitating the transition to a new franchisee or a company-owned operation. If Crave chooses to purchase these assets, it will do so at fair market value. If Crave and the franchisee cannot agree on the fair market value within thirty days of Crave exercising its option, the value will be determined by two appraisers, one selected by each party, and the average of their determinations will be binding. Each party will bear their own legal costs and split the appraisal fees.
If Crave elects to purchase the assets, it has the right to offset any fees owed by the franchisee, amounts due to Crave, and costs related to any escrow arrangement against the purchase price. The remaining amount will be paid in cash. This provision protects Crave's financial interests and ensures that any outstanding debts or obligations are settled during the asset transfer process.