When is the Crave transfer fee for a transfer between owners due?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Transfer Fee – Transfer Between Owners | $5,000 | With request for approval of transfer | For any transfer of ownership interests or shares between the owners of the franchise, or if you are adding a new owner (as long as majority ownership does not change). |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the transfer fee for a transfer between owners is due when the franchisee submits a request for approval of the transfer. This fee amounts to $5,000 and applies to any transfer of ownership interests or shares between the existing owners of the franchise, or when adding a new owner, provided that the majority ownership does not change.
This means that if a franchisee plans to sell their ownership stake to another individual or wants to bring in a new partner without altering the majority ownership, they must submit a formal request to Crave for approval. Along with this request, the franchisee is obligated to pay the $5,000 transfer fee. This fee is non-refundable, regardless of whether the transfer is ultimately approved or denied by Crave.
It's important for prospective franchisees to factor this transfer fee into their long-term financial planning. If they anticipate needing to transfer ownership at any point, they should be prepared to pay this fee upfront with their transfer request. Understanding the timing and amount of this fee is crucial for managing the costs associated with potential ownership changes during the franchise term.