Is the transferee required to renovate the Crave Franchised Business to current standards?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
rsede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, the then-current Royalty Fee and Brand Development Fee (as applicable); provided, however, that the transferee shall not be required to pay any initial franchise fee;
(g) The transferee, at its expense, shall renovate, modernize and otherwise upgrade the Franchised Business and, if applicable, any delivery vehicles to conform to the then-current standards and specifications of the System, and shall complete the upgrading and other requirements which conform to the System-wide standards within the time period reasonably specified by us;
(h) The transferor shall remain liable for all of the obligations to us in connection with the Franchised Business incurred prior to the effective date of the transfer and shall execute any and all instruments reasonably requested by us to evidence such liability;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a transferee—someone who is buying an existing Crave franchise—is responsible for upgrading the business to meet the current system standards. This includes renovations, modernization, and any other upgrades necessary to conform to Crave's specifications at the time of the transfer. The transferee bears the expense of these upgrades. Crave will specify a reasonable timeframe for completing these upgrades to meet system-wide standards.
This requirement ensures that all Crave locations maintain a consistent brand image and quality. For a prospective franchisee, this means that if you are considering purchasing an existing Crave franchise, you need to factor in the potential costs of bringing the location up to current standards. This could involve significant capital expenditure depending on how recently the location was last renovated and how closely it aligns with Crave's current image.
Furthermore, the transferee will need to execute the standard form franchise agreement then being offered to new Crave franchisees, which supersedes the original agreement. The terms of this new agreement may differ from the original, including potential changes to the Royalty Fee and Brand Development Fee. However, the transferee is not required to pay any initial franchise fee. This ensures that the Crave system maintains its standards while providing a pathway for existing franchisees to transfer their business to new owners.