What is the remaining obligation of the Assignee after further assigning the lease for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Agrees that Assignee may further assign the Lease to or enter into a sublease with a person, firm or corporation who agrees to assume the tenant's obligations under the Lease and is reasonably acceptable to Lessor and that upon that assignment Assignee will have no further liability or obligation under the Lease as assignee, tenant or otherwise, other than to certify that the additional assignee or sublessee operates the premises the Lease demises as a Crave restaurant.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, an assignee who takes possession of the premises and assumes the lease may further assign the lease to another party. If this subsequent assignee agrees to assume the tenant's obligations under the lease and is reasonably acceptable to the Lessor, the original assignee's liability is limited.
Specifically, the original assignee will have no further liability or obligation under the lease as an assignee or tenant. However, their sole remaining duty is to certify that the new assignee or sublessee operates the premises as a Crave restaurant. This ensures that the location continues to function as a Crave franchise, maintaining brand consistency.
This provision protects the initial assignee from long-term lease obligations once a suitable replacement tenant is found and approved. It allows for flexibility in transferring the franchise while ensuring the location remains a Crave restaurant. Prospective franchisees should carefully review the lease agreement and collateral assignment terms to fully understand their rights and obligations in case of a future assignment.