factual

What is the dependency between the transfer of the Crave franchise after death or disability and the terms described in the section for *inter vivos* transfer?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 11.7.2 Upon your death or your claim of permanent disability, you or a representative of yours must notify us of such death or claim of permanent disability within ten (10) days of its occurrence. Any transfer upon death or permanent disability shall be subject to the same terms and conditions as described in this Section for any inter vivos transfer.
  • 14.5.2 Upon the death or claim of permanent disability of you or any Principal, you or a representative of yours must notify us of such death or claim of permanent disability within ten (10) days of its occurrence. Any transfer under this Section 14.5 shall be subject to the same terms and conditions as described in this Article 14 for any inter vivos transfer.

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

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, any transfer of the franchise due to the death or permanent disability of the franchisee is subject to the same terms and conditions as a transfer made during the franchisee's lifetime (inter vivos transfer). Specifically, upon the death or claim of permanent disability, the franchisee or their representative must notify Crave within ten days of the occurrence. The executor, administrator, or personal representative is required to transfer the franchisee's interest within six months to a Crave-approved third party. Failure to transfer within this timeframe constitutes a material default, leading to the termination of the franchise agreement.

During the period following the death or disability, Crave mandates that the Franchised Business be supervised by an interim successor manager satisfactory to Crave. Alternatively, Crave may, at its discretion, provide interim management. If Crave provides interim management, they will collect a fee equal to ten percent of the Gross Sales generated by the Franchised Business, in addition to reimbursement for all costs of travel, lodging, meals, and other expenses incurred. The interim management remains in place until the franchise is transferred to the lawful heirs or successors of the deceased or disabled individual.

This provision ensures that Crave maintains control over the transfer process and the continued operation of the franchise, even in unforeseen circumstances. The application of inter vivos transfer terms to transfers due to death or disability means that the same approval processes, transfer fees, and other requirements apply, regardless of the reason for the transfer. This protects Crave's interests by ensuring that any new franchisee meets their standards and that the transfer is handled efficiently and consistently.

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.