In the lease addendum, is Craters & Freighters franchisor considered a third-party beneficiary?

According to Craters & Freighters' 2025 Franchise Disclosure Document, the franchisor is indeed considered a third-party beneficiary in the lease addendum. Specifically, the lease addendum includes an agreement between the landlord and the franchisee (referred to as 'Lessee' in the document) that Craters & Freighters is a third-party beneficiary. This means that Craters & Freighters has specific rights and benefits under the lease addendum, even though they are not a direct party to the lease agreement itself.

This provision is significant for a prospective Craters & Freighters franchisee because it gives the franchisor certain protections and oversight regarding the franchise location. As a third-party beneficiary, Craters & Freighters may have the right to enforce certain terms of the lease addendum or take action if the franchisee or landlord violates the agreement. This arrangement helps Craters & Freighters ensure that the franchise location meets their standards and that the franchisee operates the business in accordance with the franchise agreement.

In practical terms, this clause in the lease addendum strengthens Craters & Freighters' position in maintaining brand standards and operational consistency across all franchise locations. It also provides an added layer of security for Craters & Freighters, as they have a legal basis to intervene in lease-related matters that could impact the franchise's performance or reputation. Franchisees should understand that while they are the primary tenant, Craters & Freighters has a vested interest in the lease and can exercise certain rights as a result of this third-party beneficiary status.