What is the condition under which Crave Cookies transfer fees are collectable?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not Transfer this MUDA without the prior written consent of Crave Cookies Franchising, and any Transfer without Crave Cookies Franchising's prior written consent shall be void.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies FDD, a franchisee cannot transfer their Multi-Unit Development Agreement (MUDA) without first obtaining written consent from Crave Cookies Franchising. If a franchisee attempts to transfer the MUDA without this prior written consent, the transfer will be considered void, meaning it has no legal effect. This requirement ensures that Crave Cookies maintains control over who is developing their franchises and can assess the capabilities and suitability of any potential new developers.
This condition is fairly standard in franchising, as franchisors typically want to approve any transfer to ensure the new franchisee meets their operational and financial standards. By requiring consent, Crave Cookies can protect its brand and the interests of its other franchisees.
Prospective franchisees should be aware of this restriction and factor it into their plans, especially if they foresee a potential need to transfer their development rights in the future. It would be prudent to discuss the criteria Crave Cookies uses to evaluate transfer requests during the due diligence process to understand what factors might influence the franchisor's decision.