Can Crave undertake a refinancing, recapitalization, or leveraged buyout?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Nothing contained in this Agreement shall require us to remain in the food service business or to offer the same products and services, whether or not bearing the Marks, in the event that we exercise our right to assign our rights in this Agreement.
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 undertake a refinancing, recapitalization, or leveraged buyout. The FDD states that Crave can engage in various financial restructurings.
This means that Crave can alter its financial structure through methods like refinancing debt, recapitalizing equity, or undergoing a leveraged buyout. These actions could change the ownership, debt levels, or overall financial stability of the company.
For a potential franchisee, this clause indicates that the future direction and financial health of Crave could change significantly. While such changes aren't inherently negative, they could impact the way Crave operates and supports its franchisees. It is important to note that franchisees waive any claims, demands, or damages related to the loss of the Marks or association with Crave Franchising, LLC as a result of these actions.