What specific powers does the Crave franchisee grant to the franchisor regarding Electronic Advertising and Telephone Listings?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:
2.4.1 Direct the Internet Companies to transfer all Franchisee's interest in and to the Electronic Advertising and Telephone Listings to Franchisor, or alternatively, to direct the Internet Companies to terminate any or all of the Electronic Advertising and Telephone Listings;
2.4.2 Direct the Telephone Companies to transfer all Franchisee's interest in and to the Telephone Listings to Franchisor, or alternatively, to direct the Telephone Companies to terminate any or all of the Telephone Listings; and
2.4.3 Execute such standard assignment forms or other documents as the Internet Companies and/or Telephone Companies may require in order to affect such transfers or terminations of Franchisee's interest.
2.5 Certification of Termination.
Franchisee hereby directs the Internet Companies and Telephone Companies to accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.
- 2.6 Cessation of Obligations.
After the Internet Companies and the Telephone Companies have duly transferred all Franchisee's interests as described in paragraph 2.3 above to Franchisor, as between Franchisee and Franchisor, Franchisee will have no further interest in, or obligations with respect to the particular Electronic Advertising and/or Telephone Listing. Notwithstanding the foregoing, Franchisee will remain liable to each and all of the Internet Companies and Telephone Companies for the respective sums Franchisee is obligated to pay to them for obligations Franchisee incurred before the date Franchisor duly accepted the transfer of such interests, or for any other obligations not subject to the Franchise Agreement or this Agreement.
3. Miscellaneous
- 3.1 Release.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees grant significant powers to Crave regarding electronic advertising and telephone listings, particularly upon termination of the franchise agreement or at Crave's request. Crave has the power to direct internet and telephone companies to transfer all of the franchisee's interest in electronic advertising and telephone listings to Crave. Alternatively, Crave can direct these companies to terminate any or all of the electronic advertising and telephone listings.
To facilitate these transfers or terminations, the franchisee grants Crave the authority to execute standard assignment forms or other necessary documents required by internet and telephone companies. Crave's written statement, signed by an officer or agent, is considered conclusive proof of the termination of the Franchise Agreement, which the internet and telephone companies must accept. Once the transfer of interests is complete, the franchisee relinquishes any further interest in or obligations related to the specific electronic advertising or telephone listings, although they remain liable for any outstanding payments incurred before the transfer.
Furthermore, the franchisee appoints Crave as their attorney-in-fact, granting them full power and authority to take any action and execute any documents necessary to fulfill the agreement's purposes. This appointment is considered irrevocable until the franchisee meets all obligations under the Franchise Agreement and any other related agreements. Crave also reserves the right to specify the content, frequency, and procedure for updating any "click through" subpage provided for the franchisee's business on Crave's website. The franchisee cannot maintain their own website or advertise online in connection with the franchised business without Crave's permission and cannot use the Crave name in any domain.
These provisions ensure that Crave maintains control over its brand's online presence and customer communications, especially after a franchise agreement ends. For a prospective franchisee, this means a loss of control over online advertising assets and telephone listings upon termination or at Crave's request. It is important to understand the implications of these terms and how they might affect the franchisee's ability to operate independently or start a similar business after the franchise agreement concludes.