Under what conditions can Crave assign its rights regarding transfer restrictions to another entity?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.9 We shall have the right to assign this Agreement and all of our attendant rights and privileges to any person, firm, corporation or other entity provided 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.
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 and all associated rights to another entity under specific conditions. This assignment is permissible if the entity is financially responsible and capable of fulfilling Crave's obligations at the time of the assignment. Furthermore, the entity must expressly agree to assume and perform these obligations.
This clause ensures that if Crave decides to transfer its rights, the franchisee will continue to receive the support and services outlined in the Franchise Agreement. The financial responsibility requirement aims to protect franchisees from dealing with an assignee that lacks the resources to support the franchise system effectively. The express assumption of obligations provides a legal basis for franchisees to hold the new entity accountable.
For a prospective franchisee, this means that while the parent company might change, the core obligations to support the franchise should remain intact. However, it's crucial to evaluate the reputation and capabilities of any potential assignee if Crave were to be acquired or undergo a significant change in ownership. Franchisees should seek assurance that the new entity has the experience and resources to maintain and enhance the Crave brand and system.