What conditions must be met for Crave Cookies to approve the transfer of a franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| m. Conditions for franchisor's approval of transfer | FA: § 15.2 MUDA: none | We approve the transfer, you pay the transfer fee; buyer meets our standards; buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you've made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). |
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| n. Franchisor's right of first refusal to acquire franchisee's business | FA: § 15.5 MUDA: none | If you want to transfer your business (other than to your co-owner or your spouse, sibling, or child), we have a right of first refusal. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 34–38)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the company's approval of a franchise transfer is contingent upon several conditions. The franchisee must pay the transfer fee, and the buyer must meet Crave Cookies's standards and not be a competitor. The buyer and their owners are required to sign the then-current franchise agreement and related documents, including a personal guaranty. The franchisee must have made all payments due to Crave Cookies and be in compliance with all contractual requirements.
Furthermore, the buyer must complete the training program specified by Crave Cookies. The franchisee (seller) is required to sign a general release, which typically absolves Crave Cookies of any future liabilities related to the franchise's operation up to the point of transfer. Finally, the business must comply with the then-current system specifications, which may include remodeling if applicable. These conditions ensure that any new franchisee meets Crave Cookies's standards and maintains the consistency of the brand.
It is important to note that Crave Cookies also retains a right of first refusal to acquire the franchisee's business if the franchisee wishes to transfer it to someone other than a co-owner, spouse, sibling, or child. This means that before a franchisee can sell to a third party, Crave Cookies has the option to purchase the business themselves. This provision allows Crave Cookies to control who enters the franchise system and maintain brand standards. Franchisees should carefully consider these conditions and the right of first refusal when planning to sell their Crave Cookies franchise.