Is Craters & Freighters considered a third-party beneficiary of the Lease Addendum?

According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters is indeed considered a third-party beneficiary of the Lease Addendum. This means that while the franchisee (Lessee) and the landlord are the direct parties to the lease agreement, Craters & Freighters has specific rights and benefits outlined within that agreement.

Specifically, the Lease Addendum acknowledges that the franchisee is not an agent or employee of Craters & Freighters, and the franchisee cannot create any liability on behalf of Craters & Freighters. The landlord, by entering into the addendum, understands that it does not create any duties, obligations, or liabilities for Craters & Freighters. However, the addendum explicitly states that Craters & Freighters is a third-party beneficiary, giving them certain rights related to the lease even though they are not a direct signatory.

This arrangement protects Craters & Freighters by ensuring the lease terms align with their franchise standards and provides them with legal standing to enforce certain provisions of the lease, even though they are not the tenant. For a prospective franchisee, this means that the lease agreement for their business location is not solely between them and the landlord; Craters & Freighters has a vested interest and certain rights related to that lease.