For a Crave franchise, what are the two possible dates for the rent commencement date?

According to Crave's 2025 Franchise Disclosure Document, the rent commencement date for a subleased property will be determined by whichever occurs earlier between February 1, 2025, and the first day the tenant is open for business. This means a new Crave franchisee's rent obligations could begin as early as February 1, 2025, even if they are not yet operating.

For a prospective Crave franchisee, this clause is significant because it sets the timeline for when rent payments begin. If the franchisee's location isn't ready to open by February 1, 2025, they will still be responsible for paying rent, which could impact their initial operating capital. It is important to factor in potential delays in construction, permitting, or other pre-opening activities that could push back the opening date beyond February 1st.

This type of rent commencement clause is relatively standard in commercial leases. Franchisees should carefully coordinate their opening timeline with the rent commencement date to avoid paying rent for a non-operational location. They should also discuss with Crave what support or flexibility might be available if unforeseen delays occur.