Under what conditions can Crave assign the 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 assign the franchise agreement under various conditions. Crave can sell its assets, rights to its trademarks, or the entire system to a third party. Additionally, Crave can go public, engage in private placements of securities, merge with or be acquired by another corporation, or undergo financial restructuring such as refinancing or a leveraged buyout.
Crave's ability to assign the agreement means that a franchisee may have to work with a completely different company during the term of their franchise agreement. While Crave retains the right to assign the agreement, the document stipulates that no assignment will be made except to an assignee who, in the good faith and judgment of the franchisor, is willing and financially able to assume the franchisor's obligations under the Franchise Agreement.
As a Crave franchisee, you expressly waive any claims, demands, or damages related to the loss of trademarks or the association with "CRAVE Franchising, LLC" as the franchisor due to these assignments. Furthermore, Crave is not obligated to remain in the food service business or offer the same products/services if they assign their rights within the agreement. This could significantly alter the franchise's direction and offerings under new ownership.