What is the legal structure of the Sublessee in the Crave Personal Guaranty of Lease?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
e: | | Transit/ABA Number: | | Account Number: This authority is to remain in full force and effect until Company has received written notification from me (or either of us) of its termination in such time and in such manner to afford Company and Depository a responsible opportunity to act on such request. | | Depositor: (Please Print) | | | | | | | | Date Signed | Signature(s) of Depositor, as Printed Above | | Please attach a voided blank check, for purposes of setting up Bank and Transit Numbers.
Exhibit C Franchise Agreement
Exhibit D PERSONAL GUARANTY OF LEASE
| Crave WM Franchising LLC, a Wyoming limited liability company ("Sublessor"), | |
|---|---|
| executes this Sublease (the "Sublease") herewith between Sublessor and | |
| , a | limited liability |
| company ("Sublessee"), covering certain premises, situated in the City of | in the state of, within the |
| Walmart location located at The undersigned, jointly and | |
| severally (hereinafter referred to individually and collectively as "Guarantor", whether one or | |
| more) hereby jointly and severally guarantee unto Sublessor the payment and performance of (i) all | |
| of the rental and other sums or charges which may ever become due and payable by Tenant under | |
| the Lease, including, without limitation, rental that becomes due and payable by reason of the | |
| exercise of any power to accelerate granted to Sublessor under the Sublease and any damages or | |
| other sums that become payable on account of any default by Sublessee under the Sublease, and (ii) | |
| all of the other obligations, liabilities and duties of Sublessee under the Sublease (the rental, other | |
| sums and charges and ot |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Sublessee is identified as a limited liability company. Specifically, the document outlines the agreement between Crave WM Franchising LLC, the Sublessor, and the Sublessee, defining the obligations and liabilities within the sublease agreement. This structure is relevant to the Personal Guaranty of Lease, as it dictates the legal entity to which the guaranty applies.
For a prospective Crave franchisee, understanding the legal structure of the Sublessee is crucial because it clarifies who is responsible for the lease obligations. As a limited liability company, the Sublessee's liability may be limited to the assets of the company, which can have implications for the Sublessor's recourse in case of default. The guarantor, however, provides an additional layer of security to the Sublessor, ensuring that the obligations are met even if the Sublessee's assets are insufficient.
The document also states that the term "Sublessee" includes any assignee of Sublessee, meaning that if the original Sublessee assigns the lease to another entity, that entity also falls under the same obligations and protections. This is a standard practice in franchising, as it allows for flexibility in the ownership and operation of the franchise while maintaining the integrity of the lease agreement. The guarantor's obligations extend to any such assignee, further securing the Sublessor's interests.
Therefore, a potential Crave franchisee should carefully review the terms of the Personal Guaranty of Lease and understand the implications of the Sublessee's legal structure. They should also be aware of their obligations as a guarantor and the potential risks involved, especially in the event of default or assignment of the lease. Consulting with a legal professional is advisable to fully comprehend the legal and financial ramifications of the agreement.