Does a proposed Crave Cookies franchisee assignee have to pay an initial franchise fee?

According to Crave Cookies's 2025 Franchise Disclosure Document, a proposed franchisee assignee will not be required to pay an initial franchise fee. However, Crave Cookies may impose other conditions when granting consent for a transfer.

These conditions include receiving a transfer fee equal to $10,000 (though this fee does not apply in the State of Washington) plus any broker fees, legal fees, and other out-of-pocket costs incurred by Crave Cookies. The proposed assignee and its owners must also complete Crave Cookies's franchise application processes, meet the then-applicable standards for new franchisees, and be approved by Crave Cookies as franchisees. Additionally, the proposed assignee must not be a competitor and must execute Crave Cookies's then-current form of franchise agreement and any related documents, which may contain materially different provisions than the original agreement.

These transfer requirements are typical in franchising, as franchisors want to ensure that any new franchisee meets their standards and is capable of operating the business successfully. The transfer fee compensates Crave Cookies for their time and expenses in reviewing and approving the transfer. The new franchise agreement ensures that the assignee is bound by the current terms and conditions of the franchise system.