In the event of the franchisee's death or permanent disability, how long does their representative have to transfer the Crave franchise interest?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchisee's death or permanent disability, their executor, administrator, conservator, or other personal representative has six months to transfer the franchise interest. This six-month period begins from the date of death or permanent disability. The transfer must be to a third party approved by Crave. Failure to transfer the interest within this timeframe constitutes a material default, leading to the termination of the franchise agreement.
Crave defines "permanent disability" as a mental or physical condition that is reasonably expected to prevent or actually prevents the franchisee from providing continuous and material supervision of the Crave outlet during the six-month period following the onset of the disability. The franchisee or their representative must notify Crave of the death or claim of permanent disability within ten days of its occurrence. Any transfer due to death or permanent disability is subject to the same terms and conditions as any other transfer during the franchisee's lifetime.
During the period following the franchisee's death or permanent disability, Crave requires the Crave outlet to be supervised by an interim successor manager satisfactory to them. Alternatively, Crave may, at its discretion, provide interim management. If Crave provides interim management, they will charge a fee equal to ten percent of the gross sales generated by the Crave outlet, plus all costs of travel, lodging, meals, and other expenses reasonably incurred. The franchisee's estate agrees to indemnify and hold Crave harmless from any and all acts performed by Crave during this interim management period.
This clause ensures business continuity and protects Crave's interests by mandating a swift transfer of the franchise to a qualified operator while allowing Crave to maintain operational oversight during the transition. Prospective franchisees should consider these requirements and discuss with Crave how they can prepare for such eventualities to ensure a smooth transition and avoid potential default.