For Craters & Freighters franchisees, what provisions or addendum must be included in any lease executed for the operation of the Franchised Business?
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)
According to Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee must have Craters & Freighters approve the lease and any renewals before executing it. Craters & Freighters promises not to unreasonably withhold or delay this approval.
The franchisee must try to incorporate the terms and conditions found in the Collateral Assignment of Lease and Addendum, which is included as Attachment D to the Franchise Agreement, into the lease.
The FDD specifies that Craters & Freighters' approval of the lease does not act as a guarantee or warranty of the future success or profitability of the Craters & Freighters franchise at the location. It only indicates that the lease terms meet Craters & Freighters' criteria at the time of approval. The franchisee is required to provide a copy of the fully executed lease to Craters & Freighters within 15 days of signing.