What costs are associated with Crave providing interim management after the franchisee's death or permanent disability, beyond the percentage of gross sales?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if the franchisee dies or becomes permanently disabled, Crave may provide interim management of the outlet. In such cases, Crave will charge a fee equal to ten percent of the gross sales generated by the outlet during their operation.
Beyond the 10% of gross sales, the franchisee or their estate is responsible for covering any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Crave during their period of interim management. This means that in addition to the percentage of gross sales, the franchisee will also be responsible for direct expenses incurred by Crave for managing the business during this transition period.
This arrangement continues until the Crave outlet is transferred to the deceased or disabled individual's lawful heirs or successors. It is important for a prospective franchisee to understand these potential costs and ensure that adequate provisions are in place to manage the business and cover these expenses in the event of death or permanent disability.