Are there any exceptions to the abandonment rule for a Crave franchise if the business is closed for three consecutive days?
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, a franchisee will be considered to have abandoned their franchise if they do not operate it for three consecutive days. However, there are exceptions to this rule.
The abandonment rule does not apply if the closure is due to circumstances beyond the franchisee's control or if Crave has consented to the closure. Additionally, the provision does not apply in cases of Force Majeure, which includes events like acts of God, strikes, lockouts, industrial disturbances, war, riot, epidemic, acts of terrorism, fire, or other catastrophes beyond the franchisee's control. However, a lack of financing is specifically excluded from the definition of Force Majeure.
Furthermore, if the premises are damaged or destroyed by a Force Majeure event through no fault of the franchisee, the abandonment provision will not apply, provided that the franchisee applies within thirty days for Crave's approval to relocate or reconstruct the premises. This approval cannot be unreasonably withheld but may be conditional upon the payment of a relocation fee. This clause protects the franchisee from losing their franchise due to circumstances outside their control, provided they take timely action to address the situation.