Does the Craters & Freighters franchise agreement discuss the franchisee's obligations regarding a lease for the business location?
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.
- 4.3 Development of the Premises. Franchisee will be solely responsible for developing and furnishing the Premises. Franchisor will provide to Franchisee mandatory or suggested specifications for the premises of a Craters & Freighters Franchised Business including but not limited to those involving dimensions, design, image, interior layout, décor, fixtures, Equipment, computer hardware and software, signs, and color scheme which Franchisor has approved based on its standards for quality, design, appearance, function, and performance. Franchisee must provide Franchisor with the construction plans for the Premises ("Construction Plans"), and receive Franchisor's written approval of such Construction Plans, before construction of the Premises commences. Franchisee will, upon request by Franchisor, submit to Franchisor all revised or "as
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, the franchise agreement does address the franchisee's obligations regarding the lease of the business premises. Craters & Freighters requires that franchisees get approval from the franchisor for the lease and any renewals before executing it. This approval will not be unreasonably withheld or delayed.
The Craters & Freighters franchisee must make their best effort to incorporate the terms and conditions outlined in the Collateral Assignment of Lease and Addendum, which is included as Attachment D to the franchise agreement, into the lease. Within 15 days of executing the lease, the franchisee must provide a copy to Craters & Freighters.
The FDD states that the franchisor's approval of the lease does not act as a guarantee of the success or profitability of the Craters & Freighters franchise at that location. The franchisee is solely responsible for the development and furnishing of the premises, and must adhere to the franchisor's specifications for dimensions, design, image, interior layout, and other elements. The franchisee must also submit construction plans for the premises to Craters & Freighters for written approval before starting any construction.