What is the dependency between the transfer of the Crave franchise and the franchisor's approval of the transferee after death or disability?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
14.5.1 The grant of rights under this Agreement is personal to you, and on the death or permanent disability of you or any of your Principals, the executor, administrator, conservator or other personal representative of yours or of the deceased Principal, as the case may be, shall be required to transfer your or your Principal's interest in this Agreement within six (6) months from the date of death or permanent disability to a third party approved by us. Failure to transfer in accordance with the forgoing will constitute a material default and the franchise granted by this Agreement will terminate. For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent such person from providing continuous and material supervision of the operation of the Franchised Business during the six (6) month period from its onset.
- 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.
- 14.5.3 Immediately after your death or permanent disability, or while the Franchised Business is owned by your executor, administrator, guardian, personal representative or trustee, the Franchised Business 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 the Franchised Business during our operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by us, pending transfer of the Franchised Business to the deceased or disabled individual's lawful heirs or successors. If we provide interim management pursuant to this Section 14.5, you agree to indemnify and hold us and any of our representatives harmless from any and all acts which we may perform.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee dies or becomes permanently disabled, their representative is required to transfer the franchise interest within six months to a third party approved by Crave. Failure to do so constitutes a material default, leading to the termination of the franchise agreement.
Within ten days of the death or claim of permanent disability, Crave must be notified. The transfer is subject to the same terms and conditions as any other transfer made during the franchisee's lifetime. During the transfer period, Crave requires an interim successor manager to oversee the Crave outlet. If Crave provides interim management, they will collect a fee equal to ten percent of the gross sales, along with reimbursement for travel, lodging, meals, and other expenses.
This means that the transfer of a Crave franchise after the death or disability of the franchisee is contingent upon Crave's approval of the new transferee. Crave maintains significant control over who can operate the franchise, even in these circumstances, to ensure brand consistency and operational standards are upheld. The estate of the deceased or disabled franchisee bears the responsibility of finding a suitable and Crave-approved buyer within a limited timeframe, or risk losing the franchise entirely.