Crown_Trophy 2025 Franchise FAQ - FDD Ninja

Question 1

According to the Crown Trophy franchise agreement, what is Franchisor's recourse if a transfer occurs without written consent?

Accepted Answer

- Q.

Except as provided in Section 13.2 D. hereof, if Franchisee fails, refuses or neglects to obtain Franchisor's prior written approval or consent as required by this Agreement.

- 13.3 Termination With Notice and Without Opportunity to Cure.

Notwithstanding any other provision of this Section 13, Franchisor shall have the right to terminate this Agreement immediately upon written notice, without Franchisee having any opportunity to cure, in the event:

Source: Item 22 — CONTRACTS (FDD page 47)

Question 2

Must a Crown Trophy franchisee execute a general release of claims against the franchisor as a condition of transfer?

Accepted Answer

ht to purchase, it will, if Franchisee desires, assist Franchisee in seeking a third party purchaser, subject to the terms and conditions of this agreement.
- C. If Franchisor does not exercise the foregoing right to purchase, Franchisor shall not unreasonably withhold its consent to a transfer of any interest in Franchisee, this Agreement, or in the Franchised Business, subject to Franchisor's prior right of first refusal and subject to the following conditions:
- (1) All of Franchisee's monetary obligations to Franchisor, its subsidiaries or affiliated companies and any other creditors or trade creditors, including, but not limited to Franchisee's landlord, shall have been satisfied;

Source: Item 22 — CONTRACTS (FDD page 47)

Question 3

What is the required method for a Crown Trophy franchisee to notify the franchisor of their intent to transfer?

Accepted Answer

- (10) The transferee must provide Franchisor with a copy of all agreements relating to the transfer of the Franchise from Franchisee to the transferee prior to the closing of the proposed transfer transaction.

Source: Item 22 — CONTRACTS (FDD page 47)

Question 4

What type of claims must a Crown Trophy franchisee release to transfer their franchise?

Accepted Answer

- F.

Franchisee shall execute a general release, in a form prescribed by Franchisor, of any and all claims against Franchisor and its current and former subsidiaries and affiliates, and their respective past and present owners, officers, directors, shareholders, agents, representatives, and employees, provided that all rights enjoyed by Franchisee and any causes of action arising in its favor from the provisions of Article 33 of the General Business Law of New York ("GBL") and the regulations issued thereunder, shall remain in force, it being the intent of this proviso that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied; and

Source: Item 22 — CONTRACTS (FDD page 47)

Crown_Trophy 2025 FDD FAQ