Must the transferee meet Crave's business standards?

According to Crave's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the Franchised Business, the proposed transferee must meet certain criteria. Specifically, the transferee must demonstrate to Crave's reasonable satisfaction that they meet the criteria considered when reviewing a prospective franchisee's application. This includes educational, managerial, and business standards.

In addition to meeting Crave's standards, the transferee's good moral character, business reputation, and credit rating will be taken into consideration. Crave will also assess the transferee's aptitude and ability to conduct the franchised business, which may be evidenced by prior related business experience. The transferee's financial resources and capital for operating the business, as well as the geographic proximity and number of other Franchised Businesses owned or operated by the transferee, will also be evaluated.

This requirement ensures that any new franchisee taking over an existing Crave location is qualified and capable of maintaining the brand's standards and reputation. It protects Crave's interests by ensuring that only suitable candidates are approved to operate a franchise, maintaining consistency and quality across all locations. The transfer process also involves a transfer fee, which, according to other sections, is $5,000, to cover Crave's costs in reviewing the application and providing training to the transferee.