What happens to the Crave Cookies franchise upon the death or incapacity of the franchisee?

According to Crave Cookies' 2025 Franchise Disclosure Document, if the franchisee (or the owner with the largest ownership interest, if the franchisee is an entity) dies or becomes incapacitated, their executor, administrator, or personal representative must transfer the business within nine months. This transfer must be to a third party approved by Crave Cookies, or to another person who was an owner at the time of death or incapacity of the largest owner. The transfer must also comply with the standard transfer requirements outlined in Section 15.2 of the franchise agreement.

This provision ensures that the Crave Cookies franchise continues to operate even in unforeseen circumstances. The nine-month window provides the representative with time to find a suitable buyer or transfer the business to a qualified existing owner. Crave Cookies' approval of the third party is in place to maintain brand standards and ensure the new owner is capable of running the franchise effectively.

For a prospective Crave Cookies franchisee, this clause highlights the importance of succession planning. It would be prudent to have a plan in place that addresses who will manage or take over the business in the event of death or incapacity. Additionally, understanding the requirements of Section 15.2, which governs general transfers, is crucial, as the transfer upon death or incapacity must also adhere to those conditions.