What two conditions must be met for Crave's assignee to perform the franchisor's functions?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
However, no assignment will be made except to an assignee who in good faith and judgment of the franchisor, is willing and financially able to assume the franchisor's obligations under the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave can assign its rights and obligations under the Franchise Agreement to another party. However, for the assignee to take over Crave's functions as franchisor, the assignee must meet two specific conditions.
First, the assignee must be willing to assume Crave's obligations under the Franchise Agreement. This means the new party must be prepared to fulfill all the responsibilities and duties that Crave had towards its franchisees, such as providing support, training, and maintaining the brand standards.
Second, the assignee must be financially able to assume these obligations. This ensures that the new franchisor has the financial resources necessary to support the franchise system and meet its commitments to the franchisees. Crave must also be acting in good faith and use their judgment when assessing the willingness and financial ability of the assignee.