What happens if the transfer of the Crave franchise interest is not completed within the specified timeframe after the death or permanent disability of the franchisee or a principal?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
due from you hereunder and (ii) all amounts due from you to us.
- 14.4.3 Failure to comply with the provisions of this Section prior to the transfer of any interest in you, the Franchised Business or this Agreement shall constitute a material event of default under this Agreement.
14.5 Death or Disability
- 14.5.1 The grant of rights under this Agreement is personal to you, and on the death or permanent disability of you or any of your Principals, the executor, administrator, conservator or other personal representative of yours or of the deceased Principal, as the case may be, shall be required to transfer your or your Principal's 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 the franchise 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 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 grant of rights under the Franchise Agreement is personal to the franchisee or their principals. If the franchisee or a principal dies or becomes permanently disabled, their executor, administrator, conservator, or other personal representative is required to transfer the interest in the Franchise Agreement within six months from the date of death or permanent disability to a third party approved by Crave.
Failure to complete the transfer within the six-month timeframe constitutes a material default under the Franchise Agreement. If the transfer is not completed in time, the franchise granted by the agreement will terminate.
During the period following the death or disability, Crave may require that the Franchised Business be supervised by an interim successor manager satisfactory to them. Alternatively, Crave may, at its sole discretion, provide interim management. If Crave provides interim management, they will be compensated with a fee equal to 10% of the Gross Sales generated by the Franchised Business during their operation, in addition to reimbursement for all costs of travel, lodging, meals, and other expenses reasonably incurred. The franchisee agrees to indemnify and hold Crave harmless from any and all acts which they may perform during this period.