What happens upon the death or incapacity of a Crab N Spice franchisee?

According to the 2024 Crab N Spice Franchise Disclosure Document, if the Principal Executive of a Crab N Spice franchise dies or becomes incapacitated, the franchisee must promptly designate a new Principal Executive for the business. This new executive is subject to the reasonable approval of CNS Franchising.

The Principal Executive is the person primarily responsible for the Crab N Spice business and must have decision-making authority. They are also required to have at least a 10% ownership interest in the franchise. While the Principal Executive is not required to manage the day-to-day operations, they must devote substantial time and attention to the business.

This provision ensures that even in unforeseen circumstances, the Crab N Spice franchise maintains consistent leadership and oversight, aligning with the franchisor's standards and operational requirements. The franchisor's approval of the new Principal Executive allows them to ensure that the replacement meets their criteria for competence and commitment to the brand. This is a fairly standard clause in franchise agreements, as franchisors want to ensure that the business continues to be operated effectively even if the original franchisee is no longer able to manage it.