Under what conditions can the Landlord terminate the agreement regarding a Crave location?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
d Surrender**
- 1. Lease Term: The Lease Term shall be one, ten (10) year term and shall terminate on the tenth, (10), anniversary of the rent commencement date.
- 2. Landlord Buyout Provision: As per agreement with the Landlord and the Sublessor, Landlord may, without cause, at any time, terminate the agreement with Landlord and Sublessor regarding the location in this Agreement with a prior ninety (90) days written notice. In the event such termination shall take place during the initial term of this sublease, Landlord shall reimburse sublessor for initial unamortized portion of the cost of sublessee's improvements to the subleased premises, calculated on a straight-line depreciation basis over said initial sublease term. Sublessor shall pay sublessee such funds, received from Landlord. Should Landlord determine cause for nonpayment of funds, Sublessor shall not be responsible for such funds. Landlord may require Sublessor to provide proof if such cause of this provision if exercised, which Sublessee shall provide to Sublessor without issue. Sublessee acknowledges that failure to do so may impact the ability for Sublessor to receive such funds from Landlord, which will cause non-payment to Sublessee. Such documentation shall be received within fifteen (15) days upon written request. It is expressly understood and agreed to by the parties that the amount specified by the parties is reasonable and Sublessor shall not be liable for any other cost or expense of sublessee seizing operations in the applicable Subleased premises. Upon full amortization of said
initial development costs over the initial Sublease term, the Sublessor, at no time for any reason be held responsible for fees as a result of exercising this provision.
Shall this Sublease terminate because of landlord exercising the buyout right defined above, Sublessee shall immediately remove all property, signs and trade fixtures from the subleased premises and quit and surrender the Subleased premises in as-is condition, or a condition requested by the Sublessor.
3. The provisions of this Sublease are subject to the term restrictions of the original Lease. The original lease is dated ________________and is between Crave WM Franchising LLC and Walmart INC. Sublessee shall comply with all the terms of the original lease between Landlord and Sublessor.
Source: Item 22 — CONTRACTS (FDD pages 62–63)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the landlord has specific rights to terminate the agreement under certain conditions. The landlord may terminate the agreement with both the sublessor (Crave WM Franchising LLC) and the sublessee (the franchisee) at any time, without cause, by providing a prior written notice of ninety (90) days.
If the termination occurs during the initial term of the sublease, the landlord is required to reimburse the sublessor for the unamortized portion of the franchisee's initial improvement costs. This reimbursement is calculated using straight-line depreciation over the initial sublease term. The sublessor is then obligated to pass these funds on to the franchisee, unless the landlord has cause for nonpayment, in which case the sublessor is not responsible for the funds. The franchisee must provide necessary documentation within fifteen (15) days of a written request to ensure the sublessor receives the funds from the landlord.
Upon termination, the franchisee must promptly remove all property, signs, and trade fixtures from the subleased premises and surrender the premises in either as-is condition or as requested by the sublessor. It's important to note that after the initial development costs are fully amortized over the sublease term, the sublessor is not responsible for any fees resulting from the landlord exercising this buyout provision. The sublease agreement is also subject to the terms and restrictions of the original lease between Crave WM Franchising LLC and Walmart INC, and the franchisee must comply with all terms of this original lease.