Does Friedel-Crafts reaction fail with benzoic acid?
It could be that $\ce{-COOH}$ group is electron withdrawing hence there is an increased electron density in $\ce{-COOH}$ group due to -R resonating effect of electron from benzene ring.

Since friedel craft catalyst is a Lewis acid (electron deficient) the catalyst (anhydrous $\ce{AlCl3}$) reacts with electron rich COOH group of benzoic acid and gets bonded.