What is the Crave Sublessee's responsibility regarding the premises?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
mits for each Leased Premises leased under this lease and listing as Additional Insured the parties described below in Paragraph 4.
- (4) Where permitted by law, list as Additional Insureds Walmart Inc., its subsidiaries and its affiliates, and the directors, officers, shareholders, employees, agents, and representatives, and the respective successors and assigns of each, and any party Landlord has a contractual obligation to indemnify for Claims in connection with the Store or the Leased Premises. Also, a certificate naming Crave WM Franchising LLC as additional insured.
- i. Sublessee bears the responsibility of insuring for fire and all risks, including risk of flood, earthquake, and terrorism, associated with the merchandise, Trade Fixtures, and Improvements related to the operation of the Leased Premises.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the sublessee has specific responsibilities related to insuring the premises. The Crave sublessee is responsible for securing insurance coverage for fire and all risks, including flood, earthquake, and terrorism. This insurance must cover the merchandise, trade fixtures, and improvements associated with operating the leased premises.
This requirement means a Crave franchisee operating under a sublease must obtain and maintain adequate insurance policies to protect their investment in inventory, equipment, and any leasehold improvements. The policy must cover a broad range of potential hazards, including natural disasters and acts of terrorism, which can be costly to mitigate without insurance coverage.
Furthermore, the FDD states that the landlord is not liable for any damage or injury to the tenant's business property, improvements, betterments, trade fixtures, or other property within the leased premises due to fire or any other risk covered under a Causes of Loss – Special Form Insurance Policy, or due to flood, earthquake, or terrorism. This reinforces the importance of the sublessee fulfilling their insurance obligations, as they cannot rely on the landlord for compensation in the event of a covered loss. The sublessee must also list Walmart Inc., its subsidiaries and affiliates, and their respective personnel as additional insureds where permitted by law, and provide a certificate naming Crave WM Franchising LLC as an additional insured.