Under what circumstances might Crave step in and manage a franchisee's business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Management Fee | 10% of Gross Sales, plus expenses | If incurred | We may step in and manage your Franchised Business in certain circumstances, such as death, disability, or prolonged absence. We will charge a management fee if we manage your Franchised Business, and you must reimburse our expenses. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave may step in to manage a franchisee's business under specific circumstances. These include events such as the franchisee's death, disability, or prolonged absence. If Crave does take over management, the franchisee will be responsible for a management fee.
The management fee charged by Crave is 10% of Gross Sales, in addition to reimbursement for any expenses incurred by Crave during the management period. This means that if a franchisee is unable to manage their Crave business due to unforeseen circumstances, they will still be responsible for covering Crave's costs and a portion of the revenue generated during the period Crave manages the business.
This arrangement ensures that the Crave business can continue operating smoothly even in the event of a franchisee's absence or incapacity. However, it also places a financial burden on the franchisee, as they must cover the management fee and expenses while not actively managing the business. Prospective franchisees should consider this potential cost when evaluating the Crave franchise opportunity.