What specific claims is the Crave franchisee waiving related to the loss of the marks?
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, franchisees expressly waive specific claims related to the potential loss of the brand's trademarks. This waiver is tied to potential future actions Crave may take, such as selling its assets or rights to the trademarks, going public, engaging in private placements, or undergoing mergers, acquisitions, or financial restructuring.
Specifically, the franchisee waives any claims, demands, or damages that may arise from the loss of the trademarks or any variation thereof. This also includes waiving claims related to the loss of association with or identification of "CRAVE Franchising, LLC" as the franchisor. This means that if Crave were to be acquired or change its brand identity, franchisees would not be able to sue for damages related to the change in brand or loss of the original brand identity.
This waiver is significant because it places the risk of brand changes or loss of brand identity squarely on the franchisee. While such waivers are not uncommon in franchising, prospective franchisees should carefully consider the potential implications. They should evaluate the stability and long-term vision of Crave to assess the likelihood of such events occurring and the potential impact on their business. It is also important to note that Crave is not obligated to remain in the restaurant business or offer the same products and services, even if they bear the trademarks, if they choose to assign their rights in the agreement.