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What happens if the interim successor manager is not satisfactory to Crave?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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 a franchisee's death or permanent disability, Crave requires that the franchise outlet be supervised by an interim successor manager who is satisfactory to them. However, the FDD does not explicitly state the consequences if Crave finds the proposed interim successor manager unsatisfactory.

Instead, Crave retains the right, at its sole discretion, to provide interim management themselves. If Crave chooses to manage the outlet temporarily, they will charge a fee equal to ten percent (10%) of the gross sales generated by the Crave outlet. Additionally, the franchisee or their representative will be responsible for covering any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Crave during their operation of the outlet. This arrangement remains in effect until the Crave outlet and remaining Minimum Performance Schedule are transferred to the franchisee's lawful heirs or successors.

Prospective franchisees should seek clarification from Crave regarding the specific criteria used to evaluate an interim successor manager and the process for appealing a decision if a proposed manager is deemed unsatisfactory. Understanding these details is crucial for ensuring a smooth transition in the event of unforeseen circumstances and avoiding potential disputes with the franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.