Does the Craters & Freighters company's lease agreement contain any material restrictive covenants?

According to the 2025 FDD, Craters & Freighters' lease agreements do not contain any material restrictive covenants. This means that the company's lease for its office space does not include clauses that would significantly limit its business operations or activities. This is a positive aspect for potential franchisees as it indicates that Craters & Freighters, as a franchisor, is not bound by restrictive lease terms that could hinder its ability to support its franchisees.

Additionally, the lease agreements only include fixed payments. This provides clarity and predictability in the company's financial obligations related to its office space. The absence of material residual value guarantees further simplifies the lease terms, as Craters & Freighters is not obligated to ensure a specific value of the leased property at the end of the lease term.

However, the FDD also notes that the option to renew the lease is at the sole discretion of the lessor, and Craters & Freighters has not included an option to renew in the measurement of the ROU (Right-of-Use) asset and lease liability because renewal is not reasonably certain to occur. This implies a potential risk for Craters & Freighters, as the company may not have control over the renewal of its office lease, which could impact its long-term business operations if the lease is not renewed and the company needs to relocate.