Under what conditions can Crave refuse consent to a sale, assignment, or transfer by a Crave franchisee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
fer, subject to the same rights of first refusal by us or our nominee, as in the case of an initial offer. Our failure to exercise the option afforded by this Section 11.3 shall not constitute a waiver of any other provision of this Agreement, including all of the requirements of this Section with respect to the proposed transfer.
11.4 You acknowledge and agree that the restrictions on transfer imposed herein are reasonable and are necessary to protect the Development Rights, the System and the Marks, as well as our reputation and image, and are for the protection of us, you and other multi-unit developers and franchisees. Any assignment or transfer permitted by this Section 11 shall not be effective until we receive a completely executed copy of all transfer documents, and we consent in writing thereto.
11.5 Except as provided in this Section 11, we agree not to unreasonably withhold our consent to a sale, assignment or transfer by you hereunder. Consent to such transfer otherwise permitted or permissible as reasonable may be refused unless:
11.5.1 All of your obligations created by this Agreement, all other franchise documents, including all Franchise Agreements, and the relationship created hereunder are assumed by the transferee.
11.5.2 All ascertained or liquidated debts of you to us or our affiliated or subsidiary corporations are paid.
- 11.5.3 You are not in default hereunder.
11.5.4 We are reasonably satisfied that the transferee meets all of our requirements for new multi-unit developers, including but not limited to, good reputation and character, business acumen, operational ability, management skills, financial strength and other business considerations.
11.5.5 Transferee executes or, in appropriate circumstances, causes all necessary parties to execute, our standard form of Multi-Unit Development Agreement, Franchise Agreements for all Franchised Businesses open or under construction hereunder, and such other then-current ancillary agreements being required by us of new multi-unit developers on the date of transfer.
11.5.6 You execute a general release, in a form satisfactory to us, of any and all claims against us, our officers, directors, employees and principal stockholders of any and all claims and causes of action that you may have against us or any subsidiary or affiliated corporations in any way relating to this Agreement or
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave can refuse consent to a sale, assignment, or transfer of a franchise if certain conditions are not met. Crave may reasonably refuse consent unless the transferee assumes all obligations under the franchise agreement and related documents, and the franchisee is not in default.
Crave can also refuse consent if all debts owed by the franchisee to Crave or its affiliates are not paid. Additionally, the transferee must meet Crave's requirements for new multi-unit developers, including demonstrating good reputation, business acumen, operational ability, management skills, and financial strength. The transferee must also execute Crave's standard agreements for multi-unit developers and franchisees.
Furthermore, Crave requires the franchisee to execute a general release of claims against Crave and its affiliates. The franchisee must also agree to subordinate any claims against the transferee to Crave and indemnify Crave against claims by the transferee related to misrepresentations in the transfer process, excluding those made by Crave in the Franchise Disclosure Document. Finally, the franchisee must pay a transfer fee of $5,000 to cover Crave's costs associated with the transfer and providing training to the transferee.