What is the Sublessee's obligation to provide documentation to the Sublessor for the Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| ace | Store # | Month | Year | Gross Sales |
|---|---|---|---|---|
No later than the tenth (10th) calendar day of the month, Sublessee must send any percentage rent payment owed for the previous month by wiring the amount to the account below or such other account as may be deemed by sublessor in the future.
Bank Name: Chase Bank 2001 Nesconset Highway Lake Grove, NY 11755 ABA#: 021000021
Account Name: Crave WM Franchising LLC
Account #: 651103189
Sublessee shall also provide annually, no later than the last day of the fourth month following tenant fiscal year end, an independent certified accountant's report on applying agreed upon procedures conducted in accordance with the attestation standards (AT- Section 201) established by the American Institute of certified public accountants. Said agreed upon procedures shall include a comparison of the gross sales base used in the computation of the percentage rent to the specific general journal for Subleased location, consistent with the definition of gross sales below, and the computation of percentage based upon the gross sales definition. Should Sublessee fail to submit said report, Sublessor shall facilitate such report, and Sublessee shall be responsible for any and all cost associated, as well as a ten percent (10%) administration fee.
- 4. Security Deposit: Sublessee shall provide to Sublessor with a security deposit in the amount of five thousand dollars ($5,000) upon signing of this lease.
- 5. Insurance: Sublessee agrees to secure coverage compliant with Wal-Mart standards, as shown in Exhibit E hereto.
- 6. ACH Direct Payments: All payments due are to be made via direct ACH. ACH Authorization is attached hereto as Exhibit B.
Article V Performance Covenants
- Sublessee agrees to follow all provisions set forth in the Franchise Agreement signed between Crave Franchising LLC and dated for, Sublessee agrees that, for any reason, beyond its reasonable control, fails to follow any of the provisions or requirements outlined in the Franchise Agreement, attached hereto; Exhibit C, Sublessor may, at its sole discretion, cancel this Sublease, in its entirety, without notice and without penalty to Sublessor. Article VI Hours of Operation Sublessee shall operate the Subleased premises during the minimum hours below: Monday-Sunday 9 a.m.
Source: Item 22 — CONTRACTS (FDD pages 62–63)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a Sublessee has specific obligations to provide documentation to the Sublessor. Each month, no later than the 10th calendar day, the Sublessee must submit a sales report to the Sublessor via email at samantha@iwantcrave.com. This report is crucial for calculating percentage rent, which is 7% of monthly gross sales. Gross sales include all merchandise and services sold from the Subleased premises, whether for cash, credit, or credit card, but excludes returns, inter-store exchanges, and sales tax.
In addition to the monthly sales report, the Sublessee must also provide an annual report. This report, due no later than the last day of the fourth month following the tenant's fiscal year end, must be prepared by an independent certified accountant. The accountant will perform agreed-upon procedures in accordance with attestation standards set by the American Institute of Certified Public Accountants (AT- Section 201). These procedures include comparing the gross sales base used for percentage rent calculation to the specific general journal for the Subleased location, ensuring consistency with the definition of gross sales.
Failure to submit the annual report will result in the Sublessor facilitating the report at the Sublessee's expense, along with a 10% administration fee. Furthermore, if the Landlord exercises a buyout provision, the Sublessee must provide documentation to the Sublessor within 15 days upon written request to ensure the Sublessor receives reimbursement for unamortized improvements. Failure to provide this documentation may impact the Sublessor's ability to receive funds from the Landlord, which will result in non-payment to the Sublessee. These requirements ensure transparency and compliance with financial obligations under the sublease agreement.