What are the Force Majeure events that excuse a Crave franchisee from operating the Franchised Business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) If you at any time cease to operate or otherwise abandon the Franchised Business (you will be deemed to have abandoned the Franchised Business if you do not operate it for three (3) consecutive days, unless the closure is due to circumstances beyond your control or we have consented to such closure), or lose the right to possession of the premises (including, without limitation, if the lease or any other agreement by which you have the right to possess the premises is terminated), or otherwise forfeit the right to do or transact business in the jurisdiction where the Franchised Business is located; provided, however, that this provision shall not apply in cases of Force Majeure (acts of God, strikes, lockouts or other industrial disturbances, war, riot, epidemic, acts of terrorism, fire or other catastrophe or other forces beyond your control; provided, however, that Force Majeure shall not include your lack of financing), if through no fault of yours the premises are damaged or destroyed by an event as described above, provided that you apply within thirty (30) days after such event for our approval to relocate or reconstruct the premises (which approval shall not be unreasonably withheld) and you diligently pursue such reconstruction or relocation; such approval may be conditioned upon the payment of our relocation fee;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a Force Majeure event allows a franchisee to potentially relocate or reconstruct their premises if they are unable to operate due to circumstances beyond their control. These events include acts of God, strikes, lockouts or other industrial disturbances, war, riot, epidemic, acts of terrorism, fire, or other catastrophes. However, the FDD explicitly states that a lack of financing does not qualify as a Force Majeure event.
If a Crave location is damaged or destroyed by one of the listed Force Majeure events, the franchisee must apply for approval to relocate or reconstruct the premises within thirty days of the event. This approval will not be unreasonably withheld by Crave, but may be conditional upon the franchisee paying a relocation fee. This clause protects the franchisee from being penalized for temporary closures due to uncontrollable external factors, provided they take swift action to resume operations.
It is important to note that the Force Majeure clause only applies if the inability to operate is through no fault of the franchisee. This means that the franchisee must demonstrate they took reasonable precautions to prevent or mitigate the impact of the event. Additionally, while Crave will not unreasonably withhold approval for relocation or reconstruction, they may impose conditions such as the payment of a relocation fee, adding a financial consideration for the franchisee to consider during such events.