What confirmation is required from Craters & Freighters regarding a franchisee's intention to renew?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Lease of Premises. Franchisee acknowledges that Franchisor must approve the lease, and any renewal of such lease (collectively, "Lease") for the Premises of the Franchised Business prior to executing such Lease. Franchisor's approval of such Lease cannot be unreasonably withheld or delayed. Franchisee agrees to use Franchisee's best efforts to incorporate into the Lease the terms and conditions set forth in the form of Collateral Assignment of Lease and Addendum, attached hereto as Attachment D to this Agreement. Franchisee acknowledges that Franchisor's approval of the Lease for the Premises does not constitute a guarantee or warranty by Franchisor, express or implied, of the successful operation or profitability of a Craters & Freighters Franchised Business operated at the Premises and indicates only that Franchisor believes the terms and conditions of the Lease fall within the acceptable criteria established by Franchisor as of that time. Franchisee agrees to deliver a copy of the executed Lease to Franchisor within fifteen (15) days after the execution of such Lease.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
Based on the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must secure Craters & Freighters's approval for any lease renewals related to their business premises. This approval is mandatory before executing any lease renewal. Craters & Freighters assures that such approval will not be unreasonably withheld or delayed, indicating a commitment to fair and timely processing.
As part of the lease agreement, franchisees are expected to incorporate specific terms and conditions outlined in the Collateral Assignment of Lease and Addendum, which is included as Attachment D to the Franchise Agreement. After the lease is executed, franchisees are required to provide Craters & Freighters with a copy of the executed lease within fifteen days.
It's important to note that Craters & Freighters's approval of the lease does not act as a guarantee or warranty regarding the future success or profitability of the franchise at that location. Instead, it simply signifies that the lease terms meet the criteria established by Craters & Freighters at the time of approval. This distinction is crucial for franchisees to understand, as the responsibility for the business's performance remains with them.