Who is responsible for ensuring Crave outlet(s) and remaining Minimum Performance Schedule are supervised after the franchisee's death or permanent disability?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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, the responsibility for supervising the Crave outlet(s) and the remaining Minimum Performance Schedule falls to either an interim successor manager approved by Crave, or Crave itself. The franchisee or their representative must notify Crave of the death or disability within ten days of its occurrence.
If Crave provides interim management, they will charge a fee equal to ten percent of the gross sales generated by the Crave outlet(s) during their operation, in addition to all costs of travel, lodging, meals, and other expenses reasonably incurred. This arrangement is temporary, pending the transfer of the Crave outlet(s) and the remaining Minimum Performance Schedule to the lawful heirs or successors of the deceased or disabled franchisee.
The FDD specifies that the term "permanent disability" refers to a mental or physical condition that prevents the franchisee from providing continuous and material supervision of the Franchised Business during a six-month period from its onset. The executor, administrator, conservator, or other personal representative is required to transfer the franchisee's interest in the Franchise Agreement within six months from the date of death or permanent disability to a third party approved by Crave. Failure to do so constitutes a material default and will result in the termination of the franchise.