If Crave exercises its Step-In Rights, what happens to the monies generated by the operation of my Crave business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We shall keep in a separate account all monies generated by the operation of your business, less the expenses of the business, including reasonable compensation and expenses for our representatives. If we temporarily operate the Franchised Business on your behalf, you also agree to pay us the then-current fee for the management and maintenance of the Franchised Business in your absence. In the event of our exercise of the Step-In Rights**,** you agree to hold harmless us and our representatives for all actions occurring during the course of such temporary operation. You agree to pay all of our reasonable attorneys' fees and costs incurred as a consequence of our exercise of the Step-In Rights. Nothing contained herein shall prevent us from exercising any other right which we may have under this Agreement, including, without limitation, termination.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if Crave exercises its Step-In Rights to temporarily operate your franchise, the monies generated by the operation of your business will be kept in a separate account. From this account, Crave will deduct the expenses of the business, including reasonable compensation and expenses for their representatives.
In addition to the above, you will also be responsible for paying Crave the then-current fee for the management and maintenance of the Franchised Business during their temporary operation. You also agree to hold harmless Crave and its representatives for all actions occurring during the course of such temporary operation.
Furthermore, you are responsible for paying all of Crave's reasonable attorneys' fees and costs incurred as a consequence of their exercise of the Step-In Rights. It is important to note that Crave's exercise of Step-In Rights does not prevent them from exercising any other right they may have under the Franchise Agreement, including termination.