Under what circumstances might Crave reduce the duration of on-site assistance or not provide pre-opening assistance for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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), we shall have the right to prohibit you from commencing business.
If you are unable to commence operations of your Food Truck business within the timeframe required herein, we may
provide you with an extension of this timeframe or we may terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Crave may not allow a franchisee to commence business if the franchisee fails to reasonably comply with pre-opening obligations. This is with the exception of delays caused by a force majeure event. If the franchisee cannot commence operations of their Food Truck business within the required timeframe, Crave may provide an extension or terminate the agreement.
For prospective Crave franchisees, this highlights the importance of adhering to the pre-opening obligations and timelines outlined in the Franchise Agreement. Failure to meet these obligations could result in the franchisor preventing the franchisee from opening the business. It also emphasizes the need for franchisees to understand what constitutes a "force majeure" event, as this is the only explicitly stated exception to the rule.
This type of clause is relatively standard in franchise agreements, as franchisors want to ensure that franchisees are adequately prepared before opening their doors. Franchisors typically provide pre-opening support and assistance, but franchisees must also fulfill their own responsibilities, such as securing necessary permits, completing training, and purchasing equipment. The consequences for failing to meet these obligations can range from delayed opening to termination of the franchise agreement.