What is the consequence if the Crave Sublessee fails to provide the required documentation regarding the Landlord buyout?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord may require Sublessor to provide proof if such cause of this provision if exercised, which Sublessee shall provide to Sublessor without issue. Sublessee acknowledges that failure to do so may impact the ability for Sublessor to receive such funds from Landlord, which will cause non-payment to Sublessee. Such documentation shall be received within fifteen (15) days upon written request.
Source: Item 22 — CONTRACTS (FDD pages 62–63)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if the Landlord exercises their buyout provision, they may require the Sublessor (Crave WM Franchising LLC) to provide proof to justify the payment of unamortized costs for the sublessee's improvements. If this occurs, the Crave sublessee is obligated to provide the necessary documentation to the sublessor without any issues. This documentation must be provided within fifteen (15) days of a written request from the sublessor.
Failure by the Crave sublessee to provide this documentation may negatively impact the sublessor's ability to receive funds from the Landlord. Consequently, this will result in non-payment of funds to the Crave sublessee. The FDD specifies that Crave WM Franchising LLC (the sublessor) will not be liable for any other costs or expenses incurred by the sublessee as a result of ceasing operations due to the landlord's buyout.
This provision highlights the importance of the Crave sublessee's cooperation in providing necessary documentation to ensure the smooth processing of potential reimbursements in the event of a Landlord buyout. It also clarifies that Crave WM Franchising LLC is only responsible for passing through the funds received from the Landlord and is not liable for any additional costs the sublessee may incur. This is especially important for prospective franchisees to understand, as it outlines a specific scenario where their financial recovery is dependent on their adherence to documentation requests.