Does the Lease Addendum create any duties, obligations, or liabilities of or against Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Landlord acknowledges that Lessee is not an agent or employee of Franchisor and Lessee has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor, and that Landlord has entered into this Addendum to Lease with full understanding that it creates no duties, obligation, or liabilities of or against Franchisor or any affiliate of Franchisor.
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- Lessee and Landlord expressly agree that Franchisor is a third-party beneficiary of this Addendum.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, the Lease Addendum is designed to avoid creating duties, obligations, or liabilities for Craters & Freighters. The addendum explicitly states that the landlord acknowledges the franchisee is not an agent or employee of Craters & Freighters and has no authority to bind Craters & Freighters in any way. The landlord agrees that the Lease Addendum creates no duties, obligations, or liabilities for Craters & Freighters.
However, Craters & Freighters retains certain rights and options under the Lease Addendum. If the franchisee defaults on the lease, the landlord must notify Craters & Freighters, giving Craters & Freighters the option, but not the obligation, to cure the default. If Craters & Freighters chooses to cure the default, it can take an assignment of the lease.
If Craters & Freighters assumes the lease, it can further assign the lease to another party acceptable to the landlord. The Lease Addendum also specifies that Craters & Freighters is a third-party beneficiary of the addendum, giving it certain legal rights to enforce the terms of the addendum. This setup allows Craters & Freighters to protect its interests in the location of the franchise without being directly liable for the lease obligations, unless it chooses to assume them.