If transferring a Crave Cookies franchise for convenience of ownership, what documents must the franchisee provide?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.3 Transfer for Convenience of Ownership. If Franchisee is an individual, Franchisee may Transfer this Agreement to a corporation or limited liability company formed for the convenience of ownership after at least 15 days' notice to Crave Cookies Franchising, if, prior to the Transfer: (1) the transferee provides the information required by Section 2.3; (2) Franchisee provides copies of the entity's charter documents, by-laws (or operating agreement) and similar documents, if requested by Crave Cookies Franchising, (3) Franchisee owns all voting securities of the corporation or limited liability company, and (4) Franchisee provides a guaranty in accordance with Section 2.5.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee who is an individual may transfer their Franchise Agreement to a corporation or limited liability company formed for convenience of ownership. This transfer requires at least 15 days' notice to Crave Cookies Franchising.
Prior to the transfer, the franchisee must ensure that the transferee provides the information required by Section 2.3 of the Franchise Agreement. Additionally, the franchisee must provide copies of the entity's charter documents, by-laws (or operating agreement), and similar documents if requested by Crave Cookies Franchising. The franchisee must own all voting securities of the corporation or limited liability company. Finally, the franchisee must provide a guaranty in accordance with Section 2.5 of the Franchise Agreement.
It is important to note that this type of transfer is specifically for franchisees who are individuals and are looking to change the ownership structure for convenience, such as for tax or liability purposes. This differs from a transfer to a completely new owner, which would be subject to different requirements and potentially a transfer fee as outlined in Section 15.2.