Does Crave have a right of first refusal to purchase the assets of a franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
This subdivision does not prohibit a provision that grants to a franchisor a right of first refusal to purchase the assets of a franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this subdivision prohibit a provision that grants the franchisor the right
to acquire the assets of a franchise for the market or appraised value of such assets if the franchisee has breached the lawful provisions of the franchise agreement and has failed to cure the breach in the manner provided in subdivision (c).
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave does have a right of first refusal to purchase the assets of a franchise. Specifically, Crave has the right to purchase the assets of a franchise on the same terms and conditions as a bona fide third party who is willing and able to purchase those assets. This means that if a franchisee receives an offer from a third party to buy their franchise, they must first offer Crave the opportunity to purchase the franchise on the same terms.
Additionally, Crave also has the right to acquire the assets of a franchise for the market or appraised value of such assets if the franchisee has breached the lawful provisions of the franchise agreement and has failed to cure the breach. This provides Crave with an option to take over a franchise if the franchisee is not meeting their obligations under the agreement.
These rights are common in franchising, as they allow Crave to maintain control over the brand and ensure that franchises are operated according to its standards. For a prospective franchisee, this means that selling the franchise may require Crave's approval or involvement, and Crave could potentially step in to purchase the franchise under certain circumstances.