How many days does Crave have to exercise its option to purchase a Crave franchisee's business after receiving written notice of an offer?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3 If you receive from an unaffiliated third party and desire to accept a bona fide written offer to purchase your business, Development Rights and interests, we shall have the option, exercisable within thirty (30) days after receipt of written notice setting forth the name and address of the prospective purchaser, the price and terms of such offer, and a copy of such offer and the other information stated in this Section 11.3, to purchase such business, Development Rights and interests, including your right to develop sites within the Development Area, on the same terms and conditions as offered by said third party.
In order that we may have information sufficient to enable us to determine whether to exercise this option, we may require you to deliver to us certified financial statements as of the end of your most recent fiscal year and such other information about your business and operations as we may request.
If we decline or do not accept the offer in writing within thirty (30) days, you may, within thirty (30) days from the expiration of the option period, sell, assign and transfer your business, Development Rights and interest to said third party, provided we have consented to such transfer as required by this Section 11.
Any material change in the terms of the offer prior to closing of the sale to such third party shall constitute a new offer, subject to the same rights of first refusal by us or our nominee, as in the case of an initial offer.
Our failure to exercise the option afforded by this Section 11.3 shall not constitute a waiver of any other provision of this Agreement, including all of the requirements of this Section with respect to the proposed transfer.
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 a franchisee's business if the franchisee receives a legitimate offer from a third party. Crave must exercise this option within thirty (30) days after receiving written notice of the offer, which must include the prospective purchaser's name and address, the offer's price and terms, and a copy of the offer itself.
This right of first refusal allows Crave to maintain control over who enters the franchise system and ensures brand consistency. It also allows Crave to expand by acquiring successful locations.
If Crave declines to purchase the business within the 30-day period, the franchisee has 30 days from the expiration of Crave's option period to sell to the third party, provided Crave has consented to the transfer. Any material changes to the offer's terms constitute a new offer, which would again trigger Crave's right of first refusal.