What are the requirements for leasing premises for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
final decision regarding the Premises will be made by Franchisee. The location of the Premises, once approved by Franchisor, will be set forth in Attachment A to this Agreement.
- 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.
- 4.3 Development of the Premises. Franchisee will be solely responsible for developing and furnishing the Premises. Franchisor will provide to Franchisee mandatory or suggested specifications for the premises of a Craters & Freighters Franchised Business including but not limited to those involving dimensions, design, image, interior layout, décor, fixtures, Equipment, computer hardware and software, signs, and color scheme which Franchisor has approved based on its standards for quality, design, appearance, function, and performance. Franchisee must provide Franchisor with the construction plans for the Premises ("Construction Plans"), and receive Franchisor's written approval of such Construction Plans, before construction of the Premises commences. Franchisee will, upon request by Franchisor, submit to Franchisor all revised or "as
built" Construction Plans during the construction of the Premises. Additionally, Franchisee is solely responsible, at Franchisee's own expense, for all of the following relating to developing and furnishing the Premises: (i) securing all required financing; (ii) obtaining all required permits and licenses; (iii) complying with all required permits and licenses; (iv) complying with all applicable laws and the Lease; (v) constructing all required improvements and decorating the Premises in compliance with the approved Construction Plans and then-current specifications of Franchisor relating to approved brands, types, or models; (vi) purchasing and installing all required fixtures, Equipment, and signs required for the Premises; (vii) placing or displaying at the Premises (interior and exterior) only such signs, emblems, lettering, logos, and display materials that Franchisor approves from time to time; and (viii) purchasing an opening inventory of materials and supplies, including the Equipment.
- 4.4 Continuous Operation at the Premises. Franchisee agrees to operate the Franchised Business at the Premises, in accordance with Franchisor's standards, throughout the Initial Term and any Successor Term of this Agreement, unless otherwise approved in writing by Franchisor.
- 4.5 Relocation of the Premises.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee must obtain approval from Craters & Freighters for the lease of their business premises and any renewals. This approval will not be unreasonably withheld or delayed. The franchisee is expected to incorporate specific terms and conditions, outlined in the Collateral Assignment of Lease and Addendum (Attachment D), into their lease agreement. Within 15 days of executing the lease, a copy must be provided to Craters & Freighters. However, Craters & Freighters's approval does not guarantee the success or profitability of the franchise at that location; it only indicates that the lease terms meet Craters & Freighters's established criteria at the time.
The franchisee is responsible for developing and furnishing the premises according to Craters & Freighters's mandatory or suggested specifications, which cover dimensions, design, image, interior layout, décor, fixtures, equipment, computer hardware and software, signs, and color scheme. Construction plans must be submitted to Craters & Freighters for written approval before any construction begins. The franchisee must also comply with all leasehold covenants and building regulations. Failure to comply with the lease terms could result in a breach of the franchise agreement if the landlord terminates the lease due to the franchisee's default, and Craters & Freighters verifies the default.
To maintain the brand's reputation and operational standards, the franchisee must operate the business in strict accordance with the specifications, standards, operating procedures, and rules set forth in the franchise agreement, operations manuals, and other communications from Craters & Freighters. The Craters & Freighters logo must be prominently displayed on all promotional materials and signage. Overall, the franchisee is responsible for the day-to-day operation of the business, but must adhere to Craters & Freighters's system standards to protect the brand's integrity.