Must the transferee assume all obligations of the Crave franchisee under the Development Agreement and other franchise documents?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Any assignment or transfer permitted by this Section 11 shall not be effective until we receive a completely executed copy of all transfer documents, and we consent in writing thereto.
- 11.5 Except as provided in this Section 11, we agree not to unreasonably withhold our consent to a sale, assignment or transfer by you hereunder.
Consent to such transfer otherwise permitted or permissible as reasonable may be refused unless:
- 11.5.1 All of your obligations created by this Agreement, all other franchise documents, including all Franchise Agreements, and the relationship created hereunder are assumed by the transferee.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a key condition for the franchisor's consent to a transfer is that the transferee must assume all obligations of the franchisee. Specifically, the transferee needs to assume all obligations created by the Development Agreement, all other franchise documents, including all Franchise Agreements, and the relationship created.
This requirement ensures that Crave maintains consistent standards and fulfillment of obligations within its franchise system even when ownership changes. The transferee is stepping into the shoes of the original franchisee and must be willing to uphold all existing commitments. This protects Crave's interests and the interests of other franchisees in the system.
In addition to assuming all obligations, the transfer will not be effective until Crave receives a completely executed copy of all transfer documents and provides written consent. Crave agrees not to unreasonably withhold consent to a transfer, provided all conditions are met. This process ensures that Crave has control over who enters its franchise system and that all necessary legal and financial obligations are properly transferred.