How does Craters & Freighters define 'permanent disability' in the context of franchise ownership?

According to the 2025 Craters & Freighters Franchise Disclosure Document, permanent disability is defined specifically within the context of the franchise agreement. It refers to a mental or physical disability, impairment, or condition that is reasonably expected to prevent, or actually does prevent, the franchisee or an owner of a controlling interest in the franchise from effectively managing and operating the Craters & Freighters business.

This condition must persist for a period of six months or more from the time the disability, impairment, or condition begins. This definition is important because it triggers certain provisions within the franchise agreement related to the transfer of ownership.

Specifically, upon the permanent disability of the franchisee or a principal owner, their representative is required to transfer the interest in the agreement to a third party approved by Craters & Freighters. This transfer must occur within a reasonable timeframe, not exceeding six months from the date of the disability. The transfer is subject to the standard terms and conditions applicable to transfers, including Craters & Freighters' right of first refusal. If the estate is in probate court, the deadline can be extended up to twelve months from the date of disability.