What is considered a 'Competitor' to a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) the proposed assignee is not a Competitor;
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, the term 'Competitor' is referenced within the context of franchisee transfers. Specifically, Crave Cookies Franchising may reject a proposed transfer of a franchise if the proposed assignee is considered a Competitor.
This clause aims to prevent individuals or entities that could leverage the Crave Cookies system, knowledge, or brand to benefit a competing business from acquiring a franchise. This is a fairly standard practice in franchising, as franchisors want to protect their brand and system from being undermined by competitors who might gain access through a transfer.
However, the FDD excerpt does not define what specific types of businesses or activities would qualify an entity as a 'Competitor'. For a prospective franchisee, it is important to understand Crave Cookies's specific criteria for defining a competitor. This would help a franchisee understand the implications of this clause, especially if they plan to transfer their franchise in the future.