Under what conditions can Crave assign its Franchise Agreement to another entity?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ovided that, with respect to any assignment resulting in the subsequent performance by the assignee of our functions: (i) the assignee shall, at the time of such assignment, be financially responsible and economically capable of performing our obligations; and (ii) the assignee shall expressly assume and agree to perform such obligations.
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "CRAVE Franchising, LLC" as Franchisor.
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 transfer or assign the Franchise Agreement. Specifically, Crave can sell its assets, rights to its trademarks, or the entire system to a third party. Crave can also go public, engage in private placements of securities, merge with or acquire other corporations, or be acquired by another corporation. Additionally, Crave can undertake refinancing, recapitalization, leveraged buyouts, or other economic or financial restructuring.
Crave's ability to assign the agreement is not dependent on franchisee approval. The franchisee expressly waives any claims, demands, or damages related to the loss of the trademarks or the association with "CRAVE Franchising, LLC" as the franchisor due to these sales, assignments, and dispositions. This means that if Crave is acquired or merges with another entity, the franchisee cannot sue for damages related to the change in ownership or brand association.
Furthermore, the agreement does not require Crave to remain in the food service business or offer the same products and services, even if they bear the trademarks, if Crave chooses to assign its rights. However, any assignment will be made to an assignee who, in the good faith and judgment of Crave, is willing and financially able to assume Crave's obligations under the Franchise Agreement.