What must Craters & Freighters do to be recognized as the tenant under the lease after taking possession of the premises?

According to Craters & Freighters' 2025 Franchise Disclosure Document, if Craters & Freighters takes possession of the premises, they must confirm in writing to the landlord that they will assume the obligations of the franchisee (Lessee) under the lease. Additionally, Craters & Freighters must cure any defaults of the franchisee within the Cure Period to be recognized as the tenant under the lease. The landlord consents to the collateral assignment of the lease to Craters & Freighters.

This arrangement is outlined in an addendum to the lease agreement between the landlord and the franchisee. The addendum ensures that Craters & Freighters has the right, but not the obligation, to step in and cure any defaults by the franchisee, protecting their brand and the ongoing operation of the franchise. The landlord agrees to notify Craters & Freighters in writing of any default by the franchisee, giving Craters & Freighters the opportunity to rectify the situation within a specified Cure Period.

This clause is beneficial for Craters & Freighters as it provides a mechanism to maintain control over the location and prevent disruptions to the business. It also protects the landlord by ensuring the lease obligations are met, either by the original franchisee or by Craters & Freighters. The addendum clarifies that the landlord acknowledges the franchisee is not an agent or employee of Craters & Freighters, and the agreement does not create any liabilities for Craters & Freighters unless they assume the lease.