factual

What is the condition regarding the interim successor manager's acceptability to Crave?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 11.7.3 Immediately after your death or permanent disability, or while the rights granted under this Agreement are owned by your executor, administrator, guardian, personal representative or trustee, your Crave outlet(s) and remaining Minimum Performance Schedule shall be supervised by an interim successor manager satisfactory to us, or we, in our sole discretion, may provide interim management at a fee equal to ten percent (10%) of the gross sales generated by your Crave outlet(s) during our operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by us, pending transfer of your Crave outlet(s) and remaining Minimum Performance Schedule to your lawful heirs or successors.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, in the event of a franchisee's death or permanent disability, the Crave outlet must be supervised by an interim successor manager. This manager must be satisfactory to Crave. If a suitable manager is not provided, Crave has the option, at its sole discretion, to provide interim management.

If Crave provides interim management, the brand will charge a fee equal to ten percent of the gross sales generated by the Crave outlet during their operation. Additionally, the franchisee or their estate will be responsible for covering any costs incurred by Crave, including travel, lodging, meals, and other reasonable expenses. This arrangement remains in place until the Crave outlet is transferred to the franchisee's lawful heirs or successors.

This clause ensures that Crave maintains control over the operation and brand standards of the franchise even during unforeseen circumstances such as the franchisee's death or disability. The requirement for an acceptable interim successor manager protects Crave's interests and ensures a smooth transition of ownership and management. The option for Crave to provide interim management, while potentially costly to the franchisee, guarantees continuity of operations and adherence to brand standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.