Can a proposed assignee of a Crave Cookies franchise be a competitor?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) the proposed assignee is not a Competitor;
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a proposed assignee of a franchise cannot be a competitor. Specifically, Crave Cookies must approve any transfer of the franchise, and one of the conditions for approval is that "the proposed assignee is not a Competitor."
This requirement ensures that the new franchisee will not use Crave Cookies' confidential information or business practices to benefit a competing business. It protects Crave Cookies' market position and prevents potential conflicts of interest.
For a prospective franchisee, this means that if they decide to sell their Crave Cookies franchise, the potential buyer cannot be someone who owns or operates a competing cookie business. This could limit the pool of potential buyers and potentially affect the sale price or terms of the transfer. Franchisees should be aware of this restriction when considering a sale and should discuss any potential buyers with Crave Cookies to ensure they meet all requirements for transfer.