Can a proposed Crave Cookies franchisee assignee be a competitor?

According to Crave Cookies' 2025 Franchise Disclosure Document, a proposed franchisee assignee cannot be a competitor. The FDD states that Crave Cookies may reject a proposed transfer if the assignee is a competitor. This is a fairly standard clause in franchise agreements, as franchisors typically want to avoid having their brand and systems fall into the hands of competitors who could use the information to their advantage.

This condition is part of a broader set of requirements that a franchisee must meet in order to transfer their franchise. These requirements include paying a transfer fee of $10,000 (though this fee does not apply in the State of Washington), completing the franchise application process, and executing Crave Cookies' current form of franchise agreement.

For a prospective Crave Cookies franchisee, this means that if they decide to sell their franchise, the pool of potential buyers will be limited to those who are not considered competitors by Crave Cookies. This could potentially affect the sale price or the ease of finding a buyer. It is important to understand Crave Cookies' definition of "competitor" to assess the practical impact of this restriction.