Under the Crave agreement, are the franchisee's obligations binding on successors, assigns, and affiliated persons or entities?

According to Crave's 2025 Franchise Disclosure Document, the franchisee's obligations under the franchise agreement are binding on the franchisee's successors, assigns, and affiliated persons or entities. This means that if the franchisee transfers the business or if affiliated entities are involved, those parties also become responsible for fulfilling the original franchisee's duties and responsibilities as outlined in the agreement.

This provision ensures that Crave can enforce the terms of the franchise agreement even if the ownership or structure of the franchisee's business changes. It provides Crave with legal recourse against not only the original franchisee but also any successor, assignee, or affiliate who takes over the operation or becomes involved with the franchise. This clause aims to maintain consistency and adherence to the franchise agreement's standards and requirements, regardless of changes in the franchisee's organization.

For a prospective Crave franchisee, this clause highlights the importance of carefully considering the long-term implications of the franchise agreement. If the franchisee plans to sell the business, bring in partners, or involve other entities, it is crucial to understand that these parties will also be bound by the original agreement. Franchisees should seek legal counsel to fully understand the scope of these obligations and how they might affect future business decisions.