What does the Landlord consent to regarding the Lease in relation to Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
---|-----|----------------------|----| | by and between | ("Lessee") and | | | ("Landlord") for the | | | premises located at | | in | the | city | of | | , state | of | | | | |
WHEREAS, Lessee has executed a Franchise Agreement ("Franchise Agreement") with Craters & Franchise Company ("Franchisor") and, as part of such Franchise Agreement, the lease ("Lease") for Lessee's Franchised Business (as such term is defined in the Franchise Agreement) must contain certain provisions.
WHEREAS, Landlord and Lessee agree that the terms contained herein will be applicable to the Lease and, in the event that any conflict arises between the Lease and this Addendum, the terms and conditions of this Addendum will prevail.
NOW, therefore, in consideration of the mutual promises contained herein and the execution of the Lease, which execution is made simultaneously with this Lease Addendum, Landlord and Lessee hereby agree as follows:
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- Landlord agrees to notify Franchisor in writing ("Default Notice") upon the failure of Lessee to cure any default by Lessee under the Lease.
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- Upon the delivery of the Default Notice in accordance with Section 1 above, Landlord agrees that Franchisor will have the right, but will not be obligated, to cure any default(s) by Lessee under the Lease within thirty (30) days after delivery by Landlord of the Default Notice ("Cure Period"). Franchisor will notify Landlord in writing whether it intends to cure the default(s) of Lessee and take an automatic assignment of Lessee's interest in the Lease.
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Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the landlord consents to several conditions regarding the lease. The landlord must notify Craters & Freighters in writing if the franchisee fails to address any lease defaults. Upon receiving this notice, Craters & Freighters has the option, but not the obligation, to resolve the franchisee's defaults within 30 days.
Furthermore, the landlord consents to a collateral assignment of the lease, allowing Craters & Freighters to take possession of the premises if they choose to cure the franchisee's default. If Craters & Freighters takes possession, the landlord agrees that any additional assignee or sublessee will operate the premises as a Craters & Freighters business.
This arrangement benefits Craters & Freighters by providing a mechanism to protect their brand and ensure continued operation at the location if a franchisee fails. For a prospective franchisee, this means that Craters & Freighters has a vested interest in their business's success and the ability to step in to maintain the lease if necessary, offering a degree of security.