What is the condition for a Crave franchisee leasing property from a third party?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Business premises, without our prior written consent, any fixtures, furnishings, equipment, delivery vehicles, décor items, signs, games, vending machines or other items not previously approved as meeting our standards and specifications. If any of the property described above is leased by you from a third party, such lease shall be approved by us, in writing, prior to execution. Our approval shall be conditioned upon such lease containing a provision which permits any interest of yours in the lease to be assigned to us upon the termination or expiration of this Agreement and which prohibits the lessor from imposing an assignment or related fee upon us in connection with such assignment.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee leases property such as fixtures, furnishings, equipment, delivery vehicles, décor items, or signs from a third party, the lease must be approved by Crave in writing before it is executed.
Crave's approval is contingent upon the lease containing a provision that allows the franchisee's interest in the lease to be assigned to Crave if the Franchise Agreement is terminated or expires. Additionally, the lease must prohibit the lessor (the third-party leasing the property) from imposing any assignment or related fees on Crave in connection with the assignment.
This condition protects Crave's interests by ensuring they can take over the lease if the franchisee's agreement ends, without incurring extra costs. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over the location and assets of the franchise, even if the franchisee exits the system.