Can Crave refuse consent to a transfer if the Crave franchisee is in default under the Development Agreement?

According to Crave's 2025 Franchise Disclosure Document, Crave can refuse consent to a transfer of the franchise if the franchisee is in default under the Development Agreement. Specifically, Crave will not be considered unreasonable in withholding consent if the franchisee is in default.

This stipulation protects Crave by ensuring that franchisees fulfill their obligations before transferring the business to another party. It maintains the integrity of the Crave brand and system by preventing struggling or non-compliant franchisees from passing on their issues to a new owner.

For a prospective franchisee, this means that staying in compliance with the Development Agreement is crucial not only for the ongoing operation of the franchise but also for maintaining the option to sell or transfer the business in the future. Defaulting on the agreement can significantly limit the franchisee's options and potentially lead to financial losses if a transfer is desired but blocked by Crave.