Who is responsible for supervising the Crave outlet immediately after the franchisee's death or permanent disability?
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, immediately following a franchisee's death or permanent disability, the Crave outlet will be supervised by either an interim successor manager approved by Crave, or by Crave itself.
If Crave provides interim management, they will charge a fee equal to 10% of the gross sales generated by the Crave outlet during their operation. Additionally, the franchisee's estate will be responsible for covering any costs incurred by Crave, such as travel, lodging, meals, and other related expenses. This arrangement remains in effect until the Crave outlet is transferred to the deceased or disabled individual's lawful heirs or successors.
This provision ensures the continued operation of the Crave franchise and protects the brand's interests during the transition period. It also places a financial burden on the franchisee's estate to cover the costs of interim management, which could impact the overall profitability during this period. Prospective franchisees should consider this potential expense when evaluating the franchise opportunity and ensure they have adequate insurance or estate planning in place to address such a scenario.