What are the notification requirements for a Crave franchisee or their representative upon the death or claim of permanent disability of the franchisee or a principal?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, if a franchisee or any of their principals dies or claims permanent disability, the franchisee or their representative must notify Crave within ten days of the event.
Following the death or permanent disability, the rights granted under the Franchise Agreement are personal to the franchisee. The executor, administrator, conservator, or other personal representative is required to transfer the franchisee's interest in the agreement within six months to a Crave-approved third party. Failure to transfer the interest within this timeframe constitutes a material default, leading to the termination of the franchise.
During the transfer period, Crave requires the franchise to be supervised by an interim successor manager that is satisfactory to them. Alternatively, Crave may provide interim management at their discretion. If Crave provides interim management, they will collect a fee equal to 10% of the gross sales generated by the Crave outlet(s), in addition to all costs of travel, lodging, meals, and other expenses reasonably incurred. The franchisee agrees to indemnify and hold Crave harmless from any acts performed during this period.