Is lack of financing considered a Force Majeure event for Crave franchisees?
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. Any other relocation outside the Designated Territory or a relocation of the Franchised Business not caused by force majeure shall also be subject to our prior approval. If we elect to grant you the right to relocate the Franchised Business, then you shall comply with the site selection and construction proceduresset forth in Article 2. When you submit to us your relocation request, you shall pay to us a non-refundable relocation fee in an amount equal to Five Thousand Dollars ($5,000). We shall issue a revised Attachment 1, in accordance with Section 1.2, to reflect the new address of the Accepted Location.
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 addressed. However, the FDD does mention force majeure in the context of relocation and the opening date for a food truck business.
Specifically, if a Crave franchisee is unable to continue operating at their approved location due to a force majeure event, they may request approval to relocate. Additionally, if a franchisee fails to commence operations of their food truck business within the required timeframe, unless the delay is caused by a force majeure event, Crave has the right to prohibit the franchisee from commencing business or may terminate the agreement.
Since the FDD does not define what constitutes a force majeure event, it is important for a prospective Crave franchisee to clarify with the franchisor whether a lack of financing would be considered such an event. Understanding this is crucial, as it could impact the franchisee's ability to relocate or delay the opening of their food truck business without penalty.