In the event of the death or permanent disability of a Crave franchisee or their principals, how long does their representative have to transfer the franchise interest to a Crave-approved third party?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
11.7 Death or Permanent Disability.
11.7.1 The grant of rights under this Agreement is personal to you, and on your death or permanent disability, the executor, administrator, conservator, or other personal representative of yours shall be required to transfer your 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 all that is 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 your Crave outlet(s) and remaining Minimum Performance Schedule during the six (6)-month period from its onset.
- 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.
- 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 the death or permanent disability of a franchisee or their principals, their representative is required to transfer the franchise interest to a Crave-approved third party within six months from the date of death or permanent disability. Failure to do so constitutes a material default, leading to the termination of the franchise agreement. The FDD defines "permanent disability" as a mental or physical condition that prevents the person from providing continuous and material supervision of the Crave outlet during the six-month period following its onset.
Within ten days of the death or claim of permanent disability, the franchisee or their representative must notify Crave. Any transfer made under these circumstances is subject to the same terms and conditions as any other transfer made during the franchisee's lifetime. This ensures that Crave maintains control over who operates its franchises, even in unforeseen circumstances.
Immediately following the death or permanent disability, or while the franchise is managed by the executor, administrator, guardian, personal representative, or trustee, the Crave outlet must be supervised by an interim successor manager approved by Crave. Alternatively, Crave may, at its discretion, provide interim management. If Crave provides interim management, they will receive a fee equal to ten percent of the gross sales generated by the Crave outlet during their operation, in addition to reimbursement for all travel, lodging, meals, and other expenses reasonably incurred. The franchisee also agrees to indemnify Crave and its representatives from any actions performed during this period.