Does the term 'Sublessee' in the Crave Personal Guaranty of Lease include assignees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
For the purposes hereof, the | term "Sublessee" shall include any assignee of Sublessee, | and the term "Sublease" shall include any | amendment of the Sublease effected by Sublessor and Sublessee, with or | without the consent or | knowledge of Guarantor. | |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the term "Sublessee" in the Personal Guaranty of Lease includes any assignee of the Sublessee. This means that if a Crave franchisee assigns their sublease to another party, that party is also considered a Sublessee under the terms of the guaranty.
This is significant for a prospective Crave franchisee because if they sign a personal guaranty of the sublease, they are guaranteeing the obligations of not only themselves but also any future assignees of the sublease. This could create a situation where the franchisee remains liable for the sublease even after they have transferred it to someone else.
Crave also retains broad discretion to modify the sublease without affecting the guarantor's obligations. The guarantor remains bound even if the sublease terms change or if Crave grants waivers or indulgences to the sublessee. This could further increase the guarantor's risk, as they would be responsible for obligations under a potentially modified sublease agreement.
Therefore, a prospective Crave franchisee should carefully consider the implications of signing a personal guaranty of the sublease, especially regarding potential liability for assignees and the possibility of changes to the sublease terms. It would be prudent to seek legal counsel to fully understand the risks involved before signing the guaranty.