What is Crave not required to do in the event they exercise their right to assign their rights in the agreement?
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 restaurant 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, if Crave exercises its right to assign the agreement, it is not required to remain in the restaurant business or offer the same products and services. This means Crave can transfer its rights to another entity without needing to continue operating a similar business or maintaining the same menu or offerings.
This provision gives Crave significant flexibility in the event of a sale, merger, or other business restructuring. A prospective franchisee should understand that Crave could transfer the franchise agreement to a company with no prior experience in the food service industry, or to a company that intends to make significant changes to the Crave concept.
While this clause protects Crave's ability to exit or restructure its business, it introduces uncertainty for franchisees. The franchisee essentially agrees to continue operating under a new franchisor who may have a different vision or operational style. This could impact the franchisee's business and profitability, depending on the new franchisor's decisions and capabilities. Franchisees should carefully consider this potential for change when investing in a Crave franchise.