After assigning the Lease, what liability does Craters & Freighters have under the Lease?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
such assignment, Franchisor will have no further liability or obligation under the Lease as tenant, guarantor, or otherwise, other than to certify that such additional assignee or sublessee operates the premises demised by the Lease as a Craters & Freighters business.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, after the assignment of a lease, Craters & Freighters will generally have no further liability or obligation under the lease. This release from liability extends to Craters & Freighters's role as a tenant or guarantor.
The only remaining obligation for Craters & Freighters is to certify that the new assignee or sublessee is operating the premises as a Craters & Freighters business. This certification ensures that the location continues to function as a legitimate Craters & Freighters franchise, maintaining brand standards and operational consistency.
This provision protects Craters & Freighters from long-term lease obligations once a franchise changes hands, while still allowing them to ensure the continued operation of a Craters & Freighters business at the location. Prospective franchisees should understand this clause as it clarifies the limited role Craters & Freighters plays in lease agreements after assignment.