What are some of the conditions Crave Cookies Franchising may impose when granting consent to a transfer?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchising entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Franchise Fees are not refundable, as stated in Section 4.1 of this agreement. Franchisee may not transfer an undeveloped territory. Crave Cookies Franchising may reject any proposed transfer for any reason it sees fit. Accordingly, Franchisee shall neither conduct nor undergo a Transfer without providing Crave Cookies Franchising at least 60 days prior notice of the proposed Transfer, and without obtaining Crave Cookies Franchising's consent. In granting any such consent, Crave Cookies Franchising may impose conditions, including but not limited to the following:
(i) Crave Cookies Franchising receives a transfer fee equal to $10,000 plus any broker fees, legal fees and other out-of-pocket costs incurred by Crave Cookies Franchising; (The $10,000 fee does not apply in the State of Washington but Crave Cookies Franchising, LLC is still entitled to broker fees and other out-of-pocket costs incurred by Crave Cookies Franchising, LLC.);
(ii) the proposed assignee and its owners have completed Crave Cookies Franchising's franchise application processes, meet Crave Cookies Franchising's then-applicable standards for new franchisees, and have been approved by Crave Cookies Franchising as franchisees;
(iii) the proposed assignee is not a Competitor;
(iv) the proposed assignee executes Crave Cookies Franchising's then-current form of franchise agreement and any related documents, which form may contain materially different provisions than this Agreement (provided, however, that the proposed assignee will not be required to pay an initial franchise fee);
(v) all owners of the proposed assignee provide a guaranty in accordance with Section 2.5;
(vi) Franchisee has paid all monetary obligations to Crave Cookies Franchising and its affiliates, and to any lessor, vendor, supplier, or lender to the Business, and Franchisee is not otherwise in default or breach of this Agreement or of any other obligation owed to Crave Cookies Franchising or its affiliates;
(vii) the proposed assigne
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising has the right to impose several conditions when a franchisee seeks to transfer their franchise. These conditions are designed to ensure that any new franchisee meets Crave Cookies' standards and that the transfer does not negatively impact the brand.
Some of the conditions Crave Cookies may impose include requiring a transfer fee of $10,000 (though this fee is waived in Washington state, broker fees and other out-of-pocket costs still apply). The proposed new franchisee must complete Crave Cookies' franchise application process and meet the then-current standards for new franchisees. Crave Cookies also stipulates that the proposed franchisee cannot be a competitor.
Additionally, the new franchisee must execute Crave Cookies' current franchise agreement, which may contain different terms than the original agreement, although they will not be required to pay an initial franchise fee. All owners of the proposed new franchisee must provide a guaranty, and the franchisee must have paid all outstanding monetary obligations to Crave Cookies, its affiliates, and any relevant lessors, vendors, suppliers, or lenders. The proposed new franchisee, along with their owners and employees, may also be required to undergo training. Finally, both the transferring franchisee and the new franchisee must execute a general release of Crave Cookies, and the business must fully comply with Crave Cookies' most recent System Standards.