In the event of the Crave franchisee's death or permanent disability, who is responsible for transferring the 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, the responsibility for transferring the franchise interest falls upon the executor, administrator, conservator, or other personal representative of the franchisee. This representative is required to transfer the franchisee's interest in the Franchise Agreement within six months from the date of death or permanent disability. The transfer must be to a third party approved by Crave. Failure to comply with this requirement constitutes a material default, leading to the termination of the Franchise Agreement. For clarity, "permanent disability" is defined as a mental or physical condition that prevents the franchisee from providing continuous supervision of the Crave outlet during the six-month period following the onset of the disability.
Furthermore, the FDD states that Crave must be notified of the franchisee's death or claim of permanent disability within ten days of its occurrence. 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.
During the period following the franchisee's death or disability, the Crave outlet will be supervised by an interim successor manager who is satisfactory to Crave. Alternatively, Crave, at its sole discretion, may provide interim management. If Crave provides interim management, they will receive a fee equal to ten percent of the gross sales generated by the outlet, in addition to reimbursement for all costs of travel, lodging, meals, and other expenses reasonably incurred. This arrangement is pending the transfer of the franchise to the deceased or disabled individual's lawful heirs or successors, ensuring continuity of operations during the transition.