Does Craters & Freighters require franchisee approval of the lease and any renewals for the premises of the 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 Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters requires that franchisees obtain approval for the lease of their business premises and any lease renewals. However, Craters & Freighters's approval cannot be unreasonably withheld or delayed.
As a prospective franchisee, this means you must submit your lease agreement to Craters & Freighters for their review and approval before you sign it. Craters & Freighters's approval indicates that the lease terms meet their established criteria at the time of review.
The franchisee is expected to incorporate specific terms and conditions outlined in Craters & Freighters's Collateral Assignment of Lease and Addendum (Attachment D) into the lease agreement. The franchisee must also provide Craters & Freighters with a copy of the executed lease within 15 days of signing.