What happens if the Crave franchisee's representative fails to transfer the franchise interest within the six-month timeframe?
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee dies or becomes permanently disabled, their representative (executor, administrator, conservator, etc.) has six months to transfer the franchise to a Crave-approved third party.
If the representative fails to complete the transfer within this six-month period, it constitutes a material default under the Franchise Agreement. This failure results in the termination of all rights granted to the franchisee under the agreement.
This provision ensures that Crave maintains control over who operates its franchises, even in cases of death or disability. It also protects the brand by ensuring that a qualified and approved operator is in place within a reasonable timeframe. Prospective franchisees should understand this clause, as it places a significant responsibility on their estate or representative to act quickly and decisively in the event of death or permanent disability to preserve the franchise's value.