Under what circumstances is a Crave franchisee deemed to have abandoned the Franchised Business?
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 is considered to have abandoned the Franchised Business under specific conditions. If the franchisee ceases to operate the business for three consecutive days, it will be deemed as abandonment. However, this does not apply if the closure is due to circumstances beyond the franchisee's control or if Crave has consented to the closure.
Additionally, abandonment can occur if the franchisee loses the right to possession of the premises, including the termination of the lease or any other agreement that grants them the right to possess the premises. It also applies if the franchisee forfeits the right to conduct business in the jurisdiction where the Franchised Business is located.
However, these conditions do not apply in cases of Force Majeure, such as acts of God, strikes, war, riots, epidemics, acts of terrorism, fire, or other catastrophes beyond the franchisee's control. It is important to note that Force Majeure does not include a lack of financing. If the premises are damaged or destroyed due to such an event, the franchisee must apply for approval to relocate or reconstruct the premises within thirty days, and Crave's approval cannot be unreasonably withheld. Crave may condition such approval upon the payment of a relocation fee.