Can a Crave Cookies franchisee transfer an undeveloped territory?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee.** Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Crave Cookies 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
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee is prohibited from transferring an undeveloped territory.
However, a franchisee can transfer their franchise under certain conditions with Crave Cookies' consent. The franchisee must provide Crave Cookies with a 60-day notice before the proposed transfer. Crave Cookies can reject the transfer for any reason.
If Crave Cookies consents to the transfer, they may impose conditions such as receiving a transfer fee of $10,000 (though this fee does not apply in Washington state), plus broker and legal fees. The proposed assignee must also meet Crave Cookies' standards for new franchisees and not be a competitor. Additionally, the assignee must execute Crave Cookies' current franchise agreement, which may have different provisions, although they won't be required to pay an initial franchise fee.