Under what condition can a Crave franchisee transfer material assets of the Franchised Business without consent?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2.1 You understand and acknowledge that the rights and duties set forth in this Agreement are personal to you, and that we have granted rights under this Agreement in reliance on the business skill, financial capacity and personal character of you and the Principals. Accordingly, neither you nor any Principal shall sell, assign (including but not limited to by operation of law, such as an assignment under bankruptcy or insolvency laws, in connection with a merger, divorce or otherwise), transfer, convey, give away, pledge, mortgage or otherwise encumber any direct or indirect interest in you, in this Agreement, in the Franchised Business and/or any of the Franchised Business' material assets (other than in connection with replacing, upgrading or otherwise dealing with such assets as required or permitted by this Agreement), without our prior written consent. Any purported assignment or transfer, by operation of law or otherwise, made in violation of this Agreement shall be null and void and shall constitute a material event of default under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee can transfer material assets of the franchised business without prior written consent from Crave if it is in connection with replacing, upgrading, or otherwise dealing with such assets as required or permitted by the Franchise Agreement.
This exception is important for Crave franchisees because it allows them to maintain and improve their business without needing to seek approval for every minor transaction. For example, if a piece of equipment breaks down, the franchisee can replace it without delay. Similarly, if Crave requires franchisees to upgrade certain equipment or systems, the franchisee can proceed with those upgrades without first obtaining consent.
However, any other transfer of material assets requires Crave's prior written consent. This includes selling assets, assigning them, or using them as collateral. Crave maintains the right to oversee significant changes to the business's assets to protect its brand and ensure consistency across all franchise locations.