Must the proposed assignee of a Crave Cookies franchise meet the then-applicable standards for new franchisees?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(v) all owners of the proposed assignee provide a guaranty in accordance with Section 2.5;
(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;
(vii) the proposed assignee and its owners and employees undergo such training as Crave Cookies Franchising may require;
(viii) Franchisee, its Owners, and the transferee and its owners execute a general release of Crave Cookies Franchising in a form satisfactory to Crave Cookies Franchising; and
(ix) the Business fully complies with all of Crave Cookies Franchising's most recent System Standards.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, the proposed assignee must meet certain conditions. While the document doesn't explicitly state that the assignee must meet all the standards for new franchisees, it outlines several requirements that suggest a similar level of scrutiny.
Specifically, the proposed assignee and their owners and employees must undergo any training that Crave Cookies may require. Additionally, all owners of the proposed assignee must provide a guaranty. The franchisee must also ensure that the business fully complies with Crave Cookies's most recent System Standards before the transfer can be completed.
Furthermore, the franchisee must have paid all monetary obligations to Crave Cookies and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business. The franchisee must not be in default or breach of the Franchise Agreement or any other obligation owed to Crave Cookies or its affiliates. These conditions collectively imply that Crave Cookies retains significant control over who can become a franchisee through assignment, ensuring that the new operator meets their standards for financial responsibility, training, and compliance with the system.