If Crave operates a franchisee's business due to absence or disability, where will the monies from the operation of the Crave Franchised Business be kept?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to prevent any interruption of the Franchised Business operations which would cause harm to the Franchised Business, thereby depreciating the value thereof, you authorize us, who may, at our option, in the event that you are absent for any reason or are incapacitated by reason of illness and are unable, in our sole and reasonable judgment, to operate the Franchised Business, operate the Franchised Business for so long as we deem necessary and practical, and without waiver of any other rights or remedies we may have under this Agreement. All monies from the operation of the Franchised Business during such period of operation by us shall be kept in a separate account, and the expenses of the Franchised Business, including reasonable compensation and expenses for our representative, shall be charged to said account.
If, as herein provided, we temporarily operate the Franchised Business franchised herein for you, you agree to indemnify and hold harmless us and any representative of ours who may act hereunder, from any and all acts which we may perform, as regards the interests of you or third parties.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if the franchisor operates a franchisee's business due to absence or disability, all monies from the operation of the franchised business during that period will be kept in a separate account. The expenses of the franchised business, including reasonable compensation and expenses for Crave's representative, will be charged to this account.
This arrangement ensures that the franchisee's funds are segregated and used specifically for the operation of their business during the period Crave is managing it. It also provides transparency, as the franchisee can expect an accounting of income and expenses related to this temporary operation.
However, the franchisee remains responsible for indemnifying and holding harmless Crave and its representatives from any acts performed while managing the business on their behalf. This means the franchisee could still be liable for issues that arise during Crave's operation, highlighting the importance of understanding the terms and conditions under which Crave may step in to manage the business.