If I open a Crave Express Restaurant, with whom will I sign a Commercial Sub-Lease Agreement?

According to Crave's 2025 Franchise Disclosure Document, if you choose to open a Crave Express Restaurant, you will sign a Commercial Sub-Lease Agreement with Crave WM Franchising LLC, which is identified as an affiliate of Crave. Crave Express Restaurants are located within participating Walmart locations and typically require between 500 and 1,500 square feet of space.

This arrangement means that instead of leasing directly from Walmart, the franchisee subleases the space from Crave's affiliate. This is a common practice in franchise systems where the franchisor or an affiliate manages real estate to maintain brand consistency and streamline operations for franchisees.

Crave WM Franchising LLC, formed on June 12, 2024, operates as a landlord for franchisees. This structure allows Crave to maintain some control over the locations of its Express Restaurants and potentially negotiate favorable lease terms with Walmart, which are then passed on to the franchisees through the sublease agreement. Franchisees should carefully review the terms of the Commercial Sub-Lease Agreement (Exhibit B-3) to understand their obligations and the terms of the sublease, including rent, maintenance responsibilities, and any restrictions on use of the premises.

Prospective franchisees should also investigate the relationship between Crave and Crave WM Franchising LLC to fully understand the implications of this arrangement. Understanding the lease terms and the responsibilities of each party is crucial for the financial success and operational stability of the Crave Express Restaurant.