Under what condition does Crave have the right to take immediate possession of the assets of the Franchised Business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
If we or our assignee exercise this option to purchase, we shall have the right to appoint a General Manager to maintain the operation of the Franchised Business pending the closing of such purchase. Alternatively, we may require you to close the Franchised Business during such time period without removing any assets from the Accepted Location. You shall maintain in force all insurance policies required pursuant to this Agreement until the date of closing. If the Accepted Location is leased, we agree to use reasonable efforts to effect a termination of the existing lease for the Accepted Location and enter into a new lease on reasonable terms with the landlord. In the event we are unable to enter into a new lease, we will indemnify and hold you harmless from any ongoing liability under the lease from the date we assume possession of the Accepted Location.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to appoint a General Manager to maintain the operation of the Franchised Business pending the closing of the purchase if Crave or its assignee exercises the option to purchase the franchise. Alternatively, Crave may require the franchisee to close the Franchised Business during such time period without removing any assets from the Accepted Location.
This clause in the franchise agreement allows Crave to ensure the continued operation and maintenance of the franchise location during the transition period after they have decided to purchase it. This protects the brand's reputation and ensures a smooth transfer of ownership.
It is important to note that the franchisee is obligated to maintain all required insurance policies until the date of closing. Additionally, if the location is leased, Crave agrees to use reasonable efforts to terminate the existing lease and enter into a new lease with the landlord. If Crave is unable to enter into a new lease, they will indemnify and hold the franchisee harmless from any ongoing liability under the lease from the date Crave assumes possession of the location.