What happens if the Crave franchise premises are damaged or destroyed through no fault of the franchisee?
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, if the franchise premises are damaged or destroyed through no fault of the franchisee due to events like acts of God, strikes, war, or fire, the franchisee will not be considered to have abandoned the business, provided they take specific actions.
Within 30 days of the event, the franchisee must apply for Crave's approval to either relocate or reconstruct the premises. Crave's approval cannot be unreasonably withheld, but it may be conditional upon the franchisee paying a relocation fee. The franchisee must then diligently pursue the reconstruction or relocation of the premises.
This clause protects the franchisee from being in breach of contract for ceasing operations due to circumstances outside their control, offering a path to continue the franchise if they act promptly to seek approval for relocation or reconstruction. However, the franchisee should be aware of potential relocation fees and the need to diligently pursue the relocation or reconstruction to maintain their franchise rights.