What does the Crave Franchise Agreement state about the opening date of the restaurant?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
certification to us, in the form attached hereto as Attachment 7, that the Restaurant has been constructed in compliance with the Americans with Disabilities Act.
2.6 Opening Date; Time is of the Essence
You acknowledge that time is of the essence. Subject to your compliance with the conditions stated below, you shall open the Franchised Business and commence business not later than twelve (12) months after the Effective Date. The date the Franchised Business actually opens for business to the public is herein called the "Opening Date". Prior to opening, you shall complete all exterior and interior preparations for the Restaurant, including installation of equipment, fixtures, furnishings and signs, pursuant to the plans and specifications reasonably approved by us, and shall comply with all of your other pre-opening obligations, including, but not limited to, those obligations described in Sections 6.2 through 6.7, to our reasonable satisfaction. If you fail to reasonably comply with any of such obligations, except for delay caused by a force majeure event as described in Section 17.1.3(e), we shall have the right to prohibit you from commencing business. Prior to opening the Franchised Business, and before any renovation to the Franchised Business, you shall execute an Americans with Disabilities Act Certification in the form attached to this Agreement as Attachment 7 that certifies in writing to us that the Franchised Business premises and any proposed renovations comply with the Americans with Disabilities Act. If you are unable to open your Restaurant within the timeframe required herein, we may provide you with an extension of this timeframe or we may terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee must open their franchised business within twelve months of the effective date of the Franchise Agreement. The date the business opens to the public is referred to as the "Opening Date." Before opening, the franchisee must complete all exterior and interior preparations, including the installation of equipment, fixtures, furnishings, and signs, according to Crave's approved plans and specifications. The franchisee must also fulfill all other pre-opening obligations to Crave's satisfaction, as detailed in Sections 6.2 through 6.7 of the Franchise Agreement.
If the franchisee fails to comply with these obligations, unless due to a force majeure event, Crave has the right to prevent the franchisee from commencing business operations. Additionally, before opening or renovating the franchised business, the franchisee must provide Crave with an Americans with Disabilities Act Certification, confirming that the premises comply with the Americans with Disabilities Act.
If a franchisee cannot open their Crave restaurant within the required timeframe, Crave may either grant an extension or terminate the Franchise Agreement. The initial term of the Franchise Agreement commences on the effective date and extends for ten years from the opening date. This highlights the importance of adhering to the stipulated timelines to avoid potential penalties or termination of the agreement.