Does Crave require consent from the Franchisor to assign its obligations under the Franchise Agreement?

According to Crave's 2025 Franchise Disclosure Document, a franchisee (referred to as 'Covenantor' in the document) needs prior written consent from Crave to assign their obligations under the agreement. Specifically, the obligations of the Covenantor cannot be assigned without the franchisor's explicit written approval. This requirement ensures that Crave maintains control over who assumes the franchisee's responsibilities and helps protect the brand's standards and reputation.

This stipulation is common in franchising, as franchisors like Crave want to ensure that any new party taking over a franchise meets their standards for business acumen, financial stability, and commitment to the brand. By requiring consent, Crave can vet potential assignees and ensure they are a good fit for the franchise system. This protects the interests of both the franchisor and the other franchisees in the system.

For a prospective Crave franchisee, this means that if they ever want to sell or transfer their franchise, they will need to get Crave's approval. This process may involve submitting information about the potential buyer, such as their financial background and business experience. Crave has the right to refuse the transfer if they do not believe the assignee is qualified or a good fit for the system. Therefore, franchisees should carefully consider this requirement before entering into a franchise agreement with Crave.