What monetary obligations must a Crave Cookies franchisee pay before transferring the franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(vi) Franchisee has paid all monetary obligations to Crave Cookies Franchising and its affiliates, and to any lessor, vendor, supplier, or lender to the Business, and Franchisee is not otherwise in default or breach of this Agreement or of any other obligation owed to Crave Cookies Franchising or its affiliates;
15.2 By Franchisee. 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.);
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee must meet all monetary obligations to Crave Cookies, its affiliates, and any lessors, vendors, suppliers, or lenders to the business before a transfer can occur. Additionally, the franchisee must not be in default or breach of the Franchise Agreement or any other obligation owed to Crave Cookies or its affiliates. This ensures that the brand's financial interests are protected during ownership changes.
Furthermore, Crave Cookies requires a transfer fee. The standard transfer fee is $10,000, but this fee does not apply in the State of Washington. Regardless of location, the franchisee is responsible for covering any broker fees, legal fees, and other out-of-pocket costs incurred by Crave Cookies during the transfer process. This fee compensates Crave Cookies for the administrative and legal work involved in approving and processing the transfer to a new franchisee.
In practice, this means a prospective Crave Cookies franchisee needs to be current on all payments, including royalty fees, marketing fund contributions, and any other outstanding balances. They should also factor in the transfer fee and associated costs when planning to sell their franchise. Failure to meet these financial obligations could delay or prevent the transfer of the franchise. It is important to note that Crave Cookies may reject any proposed transfer for any reason it sees fit.