Under the Crave agreement, is Crave Franchising, LLC obligated to accept the transfer of any or all of the franchisee's interest in any matter?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
edit rating; transferee's aptitude and ability to conduct the business franchised herein (as may be evidenced by prior related business experience or otherwise); transferee's financial resources and capital for operation of the business; and the geographic proximity and number of other Franchised Businesses owned or operated by transferee;
(e) The transferee shall enter into a written agreement, in a form reasonably satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all obligations, covenants and agreements contained in this Agreement; and, if transferee is a corporation or a partnership, transferee's shareholders, partners or other investors, as applicable, shall execute such agreement as transferee's principals and guarantee the performance of all such obligations, covenants and agreements;
(f) The transferee shall execute, for a term ending on the expiration date of this Agreement and with such successor terms as may be provided by this Agreement, the standard form franchise agreement then being offered to new System franchisees and other ancillary agreements as we may require for the Franchised Business, which agreements shall supersede 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;
(i) At the transferee's expense, the transferee, the transferee's General Manager and/or any other applicable Franchised Business personnel shall complete any training programs then in effect for franchisees of Crave businesse
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are not freely able to transfer their interest in the franchise. Crave outlines specific conditions and stipulations regarding the transfer of a franchise. Crave maintains the right to assess the proposed transferee's suitability and financial capabilities.
Crave requires that the transferee meet several conditions, including entering into a written agreement that assumes all obligations of the original agreement, and if the transferee is a corporation or partnership, the shareholders or partners must also guarantee the performance of these obligations. The transferee must also execute Crave's then-current standard franchise agreement, which may have different terms than the original agreement, although the transferee is not required to pay an initial franchise fee. The franchisee is also responsible for ensuring the Franchised Business conforms to Crave's current standards and specifications, including renovations and upgrades within a specified time.
Furthermore, the original franchisee remains liable for all obligations incurred before the transfer date and must execute any documents Crave requires to evidence this liability. The transferee and their personnel must complete any required training programs. Additionally, Crave charges a $5,000 transfer fee to cover the costs of reviewing the transfer application, including training, legal, and accounting fees. These stipulations ensure that Crave maintains control over who becomes a franchisee and that the brand standards are upheld even after a transfer.