What monetary obligations must a Crave Cookies franchisee have paid before a transfer can occur?

According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee must have paid all monetary obligations to Crave Cookies Franchising and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business before a transfer can occur. This requirement ensures that the franchisee is in good financial standing with all relevant parties before transferring ownership.

This condition protects Crave Cookies and its affiliates from potential financial losses or complications that could arise from a transfer involving a franchisee with outstanding debts. It also ensures that other parties, such as lessors and vendors, are not negatively impacted by the transfer.

In addition to settling all monetary obligations, the franchisee must not be in default or breach of the Franchise Agreement or any other obligation owed to Crave Cookies Franchising or its affiliates. This encompasses a broad range of potential defaults beyond just monetary ones, reinforcing the need for full compliance with all contractual terms before a transfer can be approved. This requirement is fairly standard in franchising, as franchisors want to ensure a smooth transition and protect their brand's reputation.