What is the deadline for notifying Crave of the death or permanent disability of a franchisee?

According to Crave's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or any of their principals, Crave must be notified within ten days of the occurrence. This notification responsibility falls on the franchisee or their representative.

This requirement ensures that Crave is promptly informed of any circumstances that could affect the operation and management of the franchise. Following notification, the executor, administrator, conservator, or other personal representative is required to transfer the franchisee's interest in the Franchise Agreement within six months from the date of death or permanent disability to a third party approved by Crave. Failure to transfer the franchise within this timeframe constitutes a material default, leading to the termination of the franchise agreement.

During the transfer period, the Crave outlet must be supervised by an interim successor manager approved by Crave. Alternatively, Crave may provide interim management, charging a fee equal to 10% of the gross sales generated by the outlet, in addition to covering all travel, lodging, meals, and other related expenses. This arrangement ensures the continued operation of the franchise while the transfer process is underway. The transfer itself is subject to the same terms and conditions as any other transfer of interest in the franchise.

This policy is fairly standard in franchising, as franchisors need to ensure business continuity and protect their brand. The ten-day notification period is a relatively short timeframe, emphasizing the importance of having contingency plans in place. Franchisees should consult with legal and financial advisors to prepare for such eventualities and ensure compliance with Crave's requirements.