What is Crave's right if a franchisee fails to reasonably comply with their pre-opening obligations, excluding delays caused by a force majeure event?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to commencing operations, you shall have taken delivery of your fully equipped Food Truck and shall have complied 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), w
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee fails to reasonably comply with their pre-opening obligations, not including delays caused by a force majeure event, Crave has the right to terminate the franchise agreement.
Specifically, the FDD states that franchisees must take delivery of their fully equipped Food Truck and comply with all other pre-opening obligations described in Sections 6.2 through 6.7 to Crave's reasonable satisfaction. These obligations must be met prior to commencing operations of the Food Truck business, which must occur no later than six months after the Effective Date.
This means that prospective Crave franchisees need to be diligent in meeting all pre-opening requirements within the specified timeframe to avoid potential termination of their franchise agreement. Franchisees should carefully review Sections 6.2 through 6.7 of the franchise agreement to fully understand their pre-opening obligations and ensure timely compliance.