Does assigning or subletting the lease to Crave Cookies relieve the tenant of liability under the lease?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignment and Subletting. Notwithstanding any provision of the Lease to the contrary, Tenant shall have the right to assign or sublet the Lease to Franchisor, provided that no such assignment or sublease shall relieve Tenant or any guarantor of liability under the Lease. If Franchisor becomes the lessee of the Leased Premises, then Franchisor shall have the right to assign or sublease its lease to a franchisee of the Crave Cookies brand. Any provision of the Lease which limits Tenant's right to own or operate other Crave Cookies outlets in proximity to the Leased Premises shall not apply to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, if a franchisee assigns or sublets their lease to Crave Cookies, the franchisee is not relieved of liability under the lease. This is detailed in the Franchisor Rider to Lease Agreement. This rider is incorporated into the lease and specifies that its terms control in the event of any conflict with the original lease agreement.
Specifically, the rider states that the franchisee (Tenant) has the right to assign or sublet the lease to Crave Cookies, but this action does not release the franchisee from their obligations or liabilities under the lease. This means that even if the franchisee transfers the lease to Crave Cookies, they remain responsible for fulfilling the terms of the lease, such as paying rent and maintaining the property, unless otherwise agreed upon with the landlord.
This provision protects the landlord by ensuring that there is always a party responsible for the lease obligations. For a prospective Crave Cookies franchisee, this means that assigning the lease to Crave Cookies might not fully remove their financial responsibilities related to the leased premises. It is important for franchisees to understand this aspect and potentially negotiate terms with the landlord to mitigate their liability when assigning or subletting the lease.