What is the required action of the Crave franchisee or their representative upon death or claim of permanent disability?
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.
- 14.5.3 Immediately after your death or permanent disability, or while the Franchised Business is owned by your executor, administrator, guardian, personal representative or trustee, the Franchised Business 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 the Franchised Business during our operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by us, pending transfer of the Franchised Business to the deceased or disabled individual's lawful heirs or successors. If we provide interim management pursuant to this Section 14.5, you agree to indemnify and hold us and any of our representatives harmless from any and all acts which we may perform.
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 the death or permanent disability of a franchisee or any of their principals, the franchisee or their representative is required to notify Crave of such an event within ten days of its occurrence. The FDD defines "permanent disability" as a mental or physical condition that prevents the person from providing continuous supervision of the franchise operations for at least six months.
Following notification, the executor, administrator, conservator, or other personal representative is required to transfer the franchisee's interest in the Franchise Agreement to a third party approved by Crave within six months from the date of death or permanent disability. Failure to complete this transfer within the specified timeframe constitutes a material default, leading to the termination of the Franchise Agreement.
During the interim period after the death or disability, the Crave franchise must be supervised by a successor manager satisfactory to Crave. Alternatively, Crave may, at its discretion, provide interim management. If Crave provides interim management, they will be compensated with a fee equal to ten percent of the gross sales generated by the franchise, in addition to reimbursement for all costs of travel, lodging, meals, and other expenses reasonably incurred during the operation. The franchisee also agrees to indemnify and hold Crave harmless from any acts performed during this interim management period.