Are transfers of the Crave franchise upon death or permanent disability subject to the same terms and conditions as *inter vivos* transfers?
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, transfers of the franchise upon death or permanent disability are indeed subject to the same terms and conditions as transfers made during the franchisee's lifetime (inter vivos transfers). Specifically, the FDD states that any transfer under Section 14.5, which addresses death or disability, will adhere to the same terms and conditions outlined in Article 14 for inter vivos transfers.
This means that the executor, administrator, or personal representative is required to transfer the franchisee's interest within six months of the death or permanent disability to a third party approved by Crave. Failure to do so constitutes a material default, potentially leading to the termination of the franchise agreement. The term "permanent disability" is defined as a mental or physical condition that prevents continuous supervision of the Franchised Business for six months.
Furthermore, Crave specifies that they must be notified within ten days of the death or claim of permanent disability. During the transition, Crave may require the business to be supervised by an interim manager they approve, or Crave may provide interim management themselves, charging a fee equal to ten percent of the gross sales, plus all associated costs. This ensures continuity of the business while the transfer process is underway.
In essence, this policy ensures that Crave maintains control over who becomes a franchisee, even in cases of death or disability, and that the transfer process adheres to the same standards as if the franchisee were voluntarily transferring the business. This protects the brand and ensures that new franchisees meet Crave's requirements.