If Crave provides interim management after the death or permanent disability of a Crave franchisee, what expenses is the franchisee responsible for?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ment 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.
- 11.7.2 Upon your death or your claim of permanent disability, 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 upon death or permanent disability shall be subject to the same terms and conditions as described in this Section for any inter vivos transfer.
- 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.
- 11.8 Our consent to a transfer of any interest by you or of any of the Development Rights pursuant to this Section shall not constitute a waiver of any claims we may have against the transferring party, nor shall it be deemed a waiver of our right to demand exact compliance with any of the terms of this Agreement by the transferee.
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 may provide interim management for the Crave outlet. If Crave provides this service, the franchisee's estate is responsible for covering specific expenses. These expenses include a fee equal to ten percent of the gross sales generated by the Crave outlet during the period Crave manages it. Additionally, the franchisee is responsible for any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Crave during their operation of the outlet.
This arrangement ensures that the Crave business continues to operate smoothly during the transition period following the franchisee's death or disability. The 10% gross sales fee and coverage of expenses serve to compensate Crave for their management services and any costs they incur while overseeing the outlet. This provision aims to protect the Crave brand and maintain business operations while the transfer of ownership to lawful heirs or successors is pending.
It is important for prospective Crave franchisees to understand these financial responsibilities, as they will impact the franchisee's estate in the event of death or permanent disability. Franchisees should consider these potential costs when making financial and estate planning decisions. Understanding these obligations ensures that the franchisee's family or estate is prepared for the financial implications of interim management by Crave.