Is lack of financing considered a Force Majeure event for a Crave franchisee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
r license to operate the Franchised Business or to offer or sell any products or services described under this Agreement at or from any location other than the Accepted Location.
1.3 Relocation
If you are unable to continue the operation of the Franchised Business at the Accepted Location because of the occurrence of a force majeure event (as described in Section 17.1.3(e)), then you may request our approval to relocate the Franchised Business to another location in the Designated Territory, as that term is defined below, which approval shall not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave FDD, whether a lack of financing is considered a force majeure event is not explicitly detailed within the provided excerpts. However, the FDD does mention force majeure in the context of relocation and the opening date for a food truck business.
Specifically, if a force majeure event prevents a franchisee from continuing operations at their accepted location, they may request approval to relocate the Franchised Business. Additionally, if a franchisee fails to commence operations of their food truck business within the required timeframe, Crave may grant an extension unless the delay was caused by a force majeure event.
To fully understand whether a lack of financing qualifies as a force majeure event, a prospective Crave franchisee should consult the full Franchise Agreement, specifically Section 17.1.3(e) as referenced in the excerpts. It would also be prudent to discuss this specific scenario with the franchisor to gain clarity on their interpretation and application of the force majeure clause.