What is the Crave Sublessor's responsibility regarding executing the Sublease?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Crave WM Franchising LLC, a Wyoming limited liability company ("Sublessor"), | |
|---|---|
| executes this Sublease (the "Sublease") herewith between Sublessor and | |
| , a | limited liability |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave WM Franchising LLC, as the Sublessor, executes the Sublease agreement with the Sublessee. This indicates that the Sublessor is responsible for formally entering into the Sublease agreement, which outlines the terms and conditions under which the franchisee (Sublessee) will occupy the premises. The document also mentions a Guarantor who guarantees the Sublessee's obligations under the Sublease.
Furthermore, the franchisee must submit a copy of the lease or sublease to Crave for written approval before its execution and furnish a copy of the executed lease or sublease within ten days after execution. Crave must also prepare and execute a Collateral Assignment of Lease, which must be attached to the lease and incorporated therein. Crave has ten days to either approve or decline the documentation prior to its execution; failure to provide specific approval within this period means the lease is deemed not approved.
This process highlights the importance of Crave's oversight in the leasing process to ensure compliance and protect its interests. The franchisee is responsible for providing the necessary documentation and securing the location, but Crave retains the right to approve or reject the lease agreement. This ensures that the location aligns with Crave's standards and that the lease terms are acceptable to the franchisor. The Collateral Assignment of Lease further secures Crave's position by providing additional rights and control over the lease agreement.
In practical terms, a prospective Crave franchisee needs to work closely with Crave during the site selection and leasing process. They must submit all required documents promptly and ensure that the lease agreement includes the Collateral Assignment of Lease. The franchisee should also be aware of the ten-day approval period and factor this into their timeline for securing a location. Failure to comply with these requirements could result in delays or the disapproval of the lease, potentially hindering the franchisee's ability to open their Crave franchise.