What happens to the Crave Franchise Agreement if the franchisee dies, and what is the timeframe for transferring the Franchised Business?

According to Crave's 2025 Franchise Disclosure Document, the Franchise Agreement will terminate if the franchisee dies or becomes permanently disabled. Following such an event, the Franchised Business must be transferred to a replacement franchisee approved by Crave within six months. This means that the franchisee's heirs or estate will need to find a suitable buyer who meets Crave's criteria and is willing to take over the business operations.

This provision is fairly standard in franchising, as it ensures the continued operation of the business under qualified management and protects the brand's reputation. The six-month timeframe provides some flexibility for the franchisee's estate to handle the transfer process while preventing prolonged uncertainty about the business's future.

Prospective Crave franchisees should consider this clause carefully, especially if they have family members who might be interested in taking over the business in the event of their death or disability. It's important to understand Crave's criteria for approving replacement franchisees and the steps involved in the transfer process. Franchisees may want to discuss succession planning with Crave to ensure a smooth transition if the need arises.

It is also important to note that the Multi-Unit Development Agreement contains a similar clause. The rights granted under the Multi-Unit Development Agreement will terminate upon death or permanent disability, unless transferred to a third party approved by Crave within six months.