What happens if the Crave franchisee's representative fails to notify Crave of the death or disability within the specified timeframe?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the agreement stipulates specific actions upon the death or permanent disability of a franchisee or their principals. The franchisee's representative must notify Crave within ten days of such an event. However, the document does not explicitly state the consequences of failing to provide this notification within the specified timeframe.
However, the FDD does state that failure to transfer the franchise within six months of the death or permanent disability constitutes a material default, leading to the termination of the franchise agreement. While this addresses the transfer timeline, it does not directly address the notification failure.
Given the lack of a directly stated penalty for failing to notify within ten days, a prospective Crave franchisee should seek clarification from the franchisor regarding the specific repercussions of not meeting the notification deadline. Understanding the implications of such oversights is crucial for ensuring compliance and avoiding potential disputes.