What is the consequence if a Crave sublessee fails to provide the required documentation to the sublessor regarding Landlord's cause for nonpayment?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Should Landlord determine cause for nonpayment of funds, Sublessor shall not be responsible for such funds. 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 terminates the agreement with Crave (the sublessor) without cause, the Landlord may be required to reimburse Crave for the unamortized portion of the sublessee's (the franchisee's) improvement costs. If the Landlord determines there is a cause for nonpayment of these funds, Crave is not responsible for paying the franchisee.
In this situation, Crave may require the franchisee to provide documentation to prove the costs. The franchisee must provide this documentation to Crave within 15 days of the request. According to the FDD, if the Crave franchisee fails to provide the required documentation to Crave, it may impact Crave's ability to receive funds from the Landlord, which will cause non-payment to the franchisee.
This means that as a Crave franchisee, it is critical to maintain thorough records of all initial improvement costs and to promptly provide any documentation requested by Crave to ensure you can be reimbursed should the Landlord terminate the agreement.