Must the transferee meet Crave's managerial standards?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
replacing, upgrading or otherwise dealing with such assets as required or permitted by this Agreement), without our prior written consent. Any purported assignment or transfer, by operation of law or otherwise, made in violation of this Agreement shall be null and void and shall constitute a material event of default under this Agreement.
14.2.2 If you wish to transfer all or part of your interest in the Franchised Business, any of the Franchised Business' material assets (except as provided in Section 14.2.1 above) or this Agreement,
or if you or a Principal wishes to transfer or permit a transfer of any ownership interest in you, then in each such case (any or all of which are referred to in this Article 14 as a "Restricted Transfer"), transferor and the proposed transferee shall apply to us for our consent. We shall not unreasonably withhold our consent to a Restricted Transfer. We may, in our sole discretion, require any or all of the following as conditions of our approval:
- (a) All of the accrued monetary obligations of you or any of your affiliates and all other outstanding obligations to us arising under this Agreement or any other agreement shall have been satisfied in a timely manner and you shall have satisfied all trade accounts and other debts, of whatever nature or kind, in a timely manner;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the franchised business, both the transferor and the proposed transferee must apply to Crave for consent. Crave states that they will not unreasonably withhold consent to a Restricted Transfer. However, Crave may require certain conditions for approval.
One of the conditions Crave may require is that the transferee demonstrates that they meet the criteria considered when reviewing a prospective franchisee's application. This includes meeting Crave's educational, managerial, and business standards. Additionally, the transferee must have good moral character, business reputation, and credit rating. They must also demonstrate the aptitude and ability to conduct the franchised business, which may be evidenced by prior related business experience.
Furthermore, Crave will assess 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. Therefore, a prospective transferee must meet Crave's managerial standards, among other criteria, to be approved for a transfer.