Can Craters & Freighters unreasonably withhold or delay approval of the lease for the premises?
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, Craters & Freighters's approval of a franchisee's lease cannot be unreasonably withheld or delayed. However, the franchisee must have Craters & Freighters approve the lease, and any renewal of the lease, for the business premises before the lease is executed.
It is important to note that Craters & Freighters's approval of the lease does not act as a guarantee or warranty of the successful operation or profitability of the Craters & Freighters franchise at the premises. The approval only indicates that Craters & Freighters believes the lease terms fall within the acceptable criteria established by Craters & Freighters at that time.
The franchisee is responsible for incorporating specific terms and conditions into the lease, as outlined in the Collateral Assignment of Lease and Addendum. The franchisee must also provide Craters & Freighters with a copy of the executed lease within fifteen days of its execution.