What happens if the Principal Executive of a Crave Cookies franchise dies or becomes incapacitated?

According to Crave Cookies' 2025 Franchise Disclosure Document, if the Principal Executive of a franchise dies or becomes incapacitated, the executor, administrator, or personal representative of that person must transfer the business within nine months. This transfer can 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 conditions outlined in Section 15.2 of the franchise agreement.

This provision ensures business continuity in unforeseen circumstances. It allows the estate of the deceased or incapacitated Principal Executive a reasonable timeframe to find a suitable buyer or transfer the business to a qualified existing owner. The requirement for Crave Cookies' approval of the transferee helps maintain brand standards and operational consistency across the franchise system.

Section 15.2, which the transfer must comply with, likely contains additional requirements and procedures for the transfer process. A prospective franchisee should carefully review Section 15.2 to understand all the conditions that must be met in the event of death or incapacity. This includes understanding the criteria Crave Cookies uses to approve a transferee and any associated costs or training requirements for the new owner.

This clause is a standard inclusion in franchise agreements to protect the franchisor's interests and ensure the continued operation of the franchise. It is important for potential franchisees to discuss this provision with legal counsel to fully understand its implications and to plan for such contingencies.