Does the term 'Sublease' in the Crave Personal Guaranty of Lease include amendments?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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 o |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the term "Sublease" within the context of the personal guaranty includes any amendments made to the sublease. This means that as a guarantor, a franchisee is responsible for the obligations under the original sublease agreement as well as any subsequent changes or modifications made to it by Crave and the sublessee, regardless of whether the guarantor is aware of or consents to these changes. This broad definition ensures that the guarantor's obligations remain in effect even if the terms of the sublease are altered during its term.
This provision has significant implications for prospective Crave franchisees who are considering providing a personal guaranty. By signing the guaranty, they are agreeing to be responsible for the sublessee's obligations under the sublease, as it may be amended from time to time. This could potentially increase the guarantor's risk, as changes to the sublease could result in increased financial obligations or other liabilities. Franchisees should carefully consider the potential impact of any amendments to the sublease before signing the personal guaranty.
It is common practice for franchise agreements and related documents to define key terms broadly to ensure that all possible scenarios are covered. In this case, Crave's definition of "Sublease" is intended to protect the franchisor's interests by ensuring that the guarantor remains liable even if the sublease is modified. Franchisees should seek legal counsel to fully understand the scope of their obligations under the personal guaranty and the potential risks involved.