What is the Craters & Freighters franchisee's responsibility regarding the Premises?
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; (v) constructing all required improvements and decorating the Premises in compliance with the approved Construction Plans and then-current specifications of Franchisor relating to approved brands, types, or models; (vi) purchasing and installing all required fixtures, Equipment, and signs required for the Premises;
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 premises of their franchised business. The franchisee must obtain Craters & Freighters's approval for the lease and any renewals before executing it. Craters & Freighters promises not to unreasonably withhold or delay this approval. The franchisee is expected to incorporate specific terms and conditions outlined in the Collateral Assignment of Lease and Addendum provided by Craters & Freighters into their lease agreement. However, Craters & Freighters's approval does not guarantee the business's success or profitability at the location; it only indicates that the lease terms meet Craters & Freighters's established criteria at the time. The franchisee must provide a copy of the executed lease to Craters & Freighters within 15 days of signing.
The franchisee is solely responsible for developing and furnishing the premises. Craters & Freighters will provide mandatory or suggested specifications for the premises, covering aspects like dimensions, design, interior layout, décor, fixtures, equipment, computer hardware and software, signs, and color scheme. These specifications are based on Craters & Freighters's standards for quality, design, appearance, function, and performance. The franchisee must submit construction plans to Craters & Freighters for written approval before starting any construction.
The franchisee must comply with the lease terms and any additional leasehold covenants and regulations of the building. If the landlord terminates the lease due to the franchisee's default, it will be considered a material breach of the franchise agreement, provided Craters & Freighters verifies the default. Throughout the agreement, the franchisee must prominently display the Craters & Freighters logo on promotional materials and signage, adhering to Craters & Freighters's brand identity standards. The franchisee is also responsible for managing and operating the franchised business ethically, ensuring courteous and professional customer service, and handling customer complaints appropriately.