factual

Can Crave Cookies Franchising transfer the Franchise Agreement without the Franchisee's consent?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 15.1 By Crave Cookies Franchising. Crave Cookies Franchising may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and Crave Cookies Franchising may undergo a change in ownership and/or control, without the consent of Franchisee.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising has the right to transfer the Franchise Agreement to another party without obtaining the franchisee's consent. Specifically, Crave Cookies Franchising can transfer or assign the agreement, or its rights and obligations, to any person or entity. Additionally, Crave Cookies Franchising can undergo a change in ownership or control without needing the franchisee's approval.

This clause gives Crave Cookies Franchising significant flexibility in managing its business and potentially selling or restructuring the franchise system. For a prospective franchisee, this means that the entity they initially contracted with could change without their direct input or approval. While the terms of the agreement should remain in effect, the new owner's management style and priorities could differ, potentially impacting the franchisee's business.

In contrast, the franchisee's ability to transfer the agreement is significantly restricted. The franchisee acknowledges that the agreement is personal to them, and Crave Cookies Franchising relies on their specific skills and abilities. Therefore, the franchisee needs to seek Crave Cookies Franchising's consent for any transfer, and Crave Cookies Franchising can reject a proposed transfer for any reason. This difference in transfer rights highlights the power dynamic between the franchisor and franchisee in the Crave Cookies system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.