Can Crave merge with or be acquired by another corporation?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "CRAVE Franchising, LLC" as Franchisor. Nothing contained in this Agreement shall require us to remain in the food service business or to offer the same products and services, whether or not bearing the Marks, in the event that we exercise our right to assign our rights in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave Franchising, LLC has the right to merge with or be acquired by another corporation. The agreement states that Crave may sell its assets, rights to its trademarks, or the entire system to a third party. Additionally, Crave can go public, engage in private placements of securities, acquire other corporations, or undergo financial restructuring.
This clause in the franchise agreement also stipulates that franchisees waive any claims, demands, or damages related to the loss of the trademarks or the association with Crave Franchising, LLC as the franchisor, resulting from these potential changes. This means that if Crave is acquired or merges with another entity, franchisees cannot sue for damages related to brand changes or loss of association with the original franchisor.
The agreement also clarifies that Crave is not obligated to remain in the food service business or offer the same products and services if they choose to assign their rights under the agreement. This provides Crave with significant flexibility in its business operations and future direction, regardless of the impact on existing franchisees. This is a standard clause in many franchise agreements, allowing franchisors to adapt to market changes and pursue growth opportunities.
For a prospective franchisee, this means there is a risk that the brand could change significantly or even disappear if Crave is acquired or merges with another company. It is important to consider this possibility and evaluate the potential impact on the franchisee's business before investing in a Crave franchise.