Must the Crave Cookies franchisee, its owners, and the transferee execute a general release of Crave Cookies Franchising?

According to the 2025 Crave Cookies Franchise Disclosure Document, if a franchisee seeks to transfer their franchise, both the franchisee, their owners, and the prospective transferee (along with their owners) are required to execute a general release of Crave Cookies Franchising. This release must be in a form that is satisfactory to Crave Cookies Franchising.

This requirement is a condition that Crave Cookies may impose when granting consent to a franchise transfer. This means that as part of the transfer process, the franchisee, its owners, and the incoming transferee essentially waive any existing or future claims against Crave Cookies Franchising. The franchisor has the right to reject any proposed transfer for any reason it sees fit.

For a prospective franchisee, this condition highlights the importance of understanding all potential liabilities and claims before attempting to transfer the franchise. It also emphasizes the franchisor's control over the transfer process and the need for careful legal review before signing any release documents. The franchisee should seek legal counsel to fully understand the implications of signing a general release, as it could impact their ability to pursue legal action against Crave Cookies Franchising in the future.