What specific actions are considered economic or financial restructuring that the Crave franchisee waives claims against?
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 food service 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, a franchisee expressly waives any claims, demands, or damages related to the loss of trademarks or association with "CRAVE Franchising, LLC" if Crave undertakes certain economic or financial restructurings. These restructurings include refinancing, recapitalization, or a leveraged buyout.
In practical terms, this means that if Crave decides to restructure its finances in any of these ways, a franchisee cannot sue Crave for any perceived losses related to brand identity or association with the original franchisor. This waiver is broad and covers any claims arising from these specific types of financial restructuring.
This clause is significant for prospective franchisees because it limits their legal recourse in the event of major changes to Crave's financial structure. While such restructurings are normal business operations, they can impact the brand and the franchisee's business. Franchisees should carefully consider this waiver and its potential implications before investing in a Crave franchise.