What information must the transferee provide to Crave Cookies Franchising when transferring for convenience of ownership?
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's 2025 Franchise Disclosure Document, a franchisee who is an individual may transfer their franchise agreement to a corporation or limited liability company for convenience of ownership, provided they give at least 15 days' notice to Crave Cookies Franchising. Prior to the transfer, the transferee must provide the information required by Section 2.3 of the 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.
To complete the transfer for convenience of ownership, the franchisee must own all voting securities of the corporation or limited liability company. Furthermore, the franchisee must provide a guaranty in accordance with Section 2.5 of the franchise agreement.
This process allows a Crave Cookies franchisee to change the legal structure of their business for personal or business planning reasons, such as tax benefits or liability protection, while maintaining control and ownership of the franchise. The requirements ensure that Crave Cookies has sufficient information about the new entity and that the franchisee remains personally responsible for the obligations under the franchise agreement through the guaranty.