When transferring ownership interests among principals or to family members without changing management control, how much prior written notice must be provided to Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the provisions contained in Section 14.2 to the contrary, the Principals may freely transfer their ownership interests in you among themselves and, provided management control does not change, to their family members (or to trusts for the benefit of such family members), and our right of first refusal shall be inapplicable with respect to such transfers, provided you provide us with thirty (30) days prior written notice of such transfer, which notice shall include the names and percentages transferred. You shall complete and submit to us an updated Attachment 3 as necessary.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, principals can transfer their ownership interests among themselves or to family members without Crave's right of first refusal applying, provided that management control does not change. In such cases, Crave requires thirty (30) days prior written notice before the transfer.
The notice to Crave must include the names of the parties involved in the transfer and the percentages of ownership being transferred. Additionally, the franchisee must complete and submit an updated Attachment 3 to Crave as necessary, presumably to reflect the new ownership structure.
This policy allows for flexibility in ownership arrangements within the existing principal group or with family members, as long as it doesn't alter who is managing the Crave franchise. The 30-day notice period allows Crave to update their records and maintain awareness of the franchise's ownership structure.