What is the name given to the lease for the Craters & Freighters Franchised Business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the lease for the premises of the Franchised Business, including any renewals, is collectively referred to as the "Lease".
Craters & Freighters requires franchisees to obtain approval from the franchisor before executing any lease for their business premises. This approval process ensures that the terms and conditions of the lease meet the criteria established by Craters & Freighters. However, the franchisor's approval does not guarantee the success or profitability of the franchise at that location.
As a prospective franchisee, it's important to understand that you are responsible for incorporating specific terms and conditions into the lease, as outlined in the Collateral Assignment of Lease and Addendum. Additionally, you must provide a copy of the executed lease to Craters & Freighters within 15 days of signing. This ensures that the franchisor has a record of the lease agreement and can verify compliance with their standards.