What is the Craters & Freighters franchisee's responsibility regarding the Lease?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
final decision regarding the Premises will be made by Franchisee. The location of the Premises, once approved by Franchisor, will be set forth in Attachment A to this Agreement.
- 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
built" Construction Plans during the construction of the Premises. Additionally, Franchisee is solely responsible, at Franchisee's own expense, for all of the following relating to developing and furnishing the Premises: (i) securing all required financing; (ii) obtaining all required permits and licenses; (iii) complying with all required permits and licenses; (iv) complying with all applicable laws and the Lease;
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchisee has several responsibilities regarding the lease of their business premises. First, Craters & Freighters must approve the lease and any renewals before the franchisee executes it; however, Craters & Freighters's approval cannot be unreasonably withheld or delayed. The franchisee must exert their best effort to incorporate the terms and conditions outlined in the Collateral Assignment of Lease and Addendum form, which is attached to the agreement. The franchisee must also provide Craters & Freighters with a copy of the executed lease within 15 days of signing.
Craters & Freighters franchisees are solely responsible for developing and furnishing the premises, adhering to mandatory or suggested specifications provided by Craters & Freighters. These specifications cover various aspects, including dimensions, design, interior layout, fixtures, equipment, computer hardware and software, signage, and color schemes. Franchisees must submit construction plans for the premises and receive written approval from Craters & Freighters before starting any construction.
Furthermore, the Craters & Freighters franchisee must comply with the lease terms and any additional leasehold covenants and regulations of the building where the premises are located. If the landlord terminates the lease due to the franchisee's default, it constitutes a material breach of the franchise agreement, provided Craters & Freighters verifies the alleged default(s).