What monetary obligations must be satisfied before Crave will approve a transfer?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
11.5.2 All ascertained or liquidated debts of you to us or our affiliated or subsidiary corporations are paid.
11.5.3 You are not in default hereunder.
11.5.7 When you submit your request for our approval of the transfer, you shall pay to us a transfer fee equal to Five Thousand Dollars ($5,000) to cover our reasonable costs in effecting the transfer and in providing training and other initial assistance to transferee.
(j) When you submit your request for our approval of the transfer, you shall pay to us a transfer fee equal to Five Thousand Dollars ($5,000) to reimburse us for reviewing the application to transfer, including, without limitation, training expenses, legal and accounting fees;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must meet certain monetary obligations to gain approval from Crave. Specifically, when submitting a request for transfer approval, the franchisee must pay Crave a transfer fee of $5,000. This fee is intended to cover Crave's reasonable costs associated with the transfer process, including reviewing the application, training expenses, and legal and accounting fees.
In addition to the transfer fee, Crave requires that all ascertained or liquidated debts owed by the franchisee to Crave or its affiliated or subsidiary corporations are fully paid before the transfer can be approved. This ensures that the franchisee is current on all financial obligations to Crave before relinquishing control of the franchise. Furthermore, the franchisee must not be in default of the Franchise Agreement at the time of the proposed transfer.
These requirements are typical in franchising, as franchisors want to ensure a smooth transition and protect their brand's financial interests. The $5,000 transfer fee is a fairly standard amount, although it can vary among different franchise systems. Franchisees should be aware of these costs and obligations when considering a transfer, as they can impact the overall financial feasibility of the transaction. It is also important to note that even if all monetary obligations are met, Crave still has the right to refuse the transfer if the proposed transferee does not meet their requirements for new multi-unit developers.