Is Crave Cookies Franchising, LLC a third-party beneficiary of the Rider to Lease Agreement?

According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising, LLC is indeed a third-party beneficiary of the Franchisor Rider to Lease Agreement. Specifically, the Rider grants Crave Cookies Franchising the right to enforce the terms of the Rider against both the landlord and the tenant. This provision is designed to protect Crave Cookies's interests in maintaining brand standards and operational consistency at the franchise location.

Being a third-party beneficiary provides Crave Cookies with certain rights and protections related to the leased premises. For example, the landlord is required to provide Crave Cookies with copies of any default notices sent to the tenant (the franchisee) and gives Crave Cookies the option to cure the default if the franchisee fails to do so within a specified timeframe. Additionally, if the lease is terminated due to the franchisee's default, Crave Cookies has the option to enter into a new lease with the landlord under the same terms and conditions as the original lease, provided they notify the landlord within 15 days of receiving the termination notice.

Furthermore, if the Franchise Agreement is terminated between Crave Cookies and the franchisee, the franchisee is obligated to assign the lease to Crave Cookies upon written request. The landlord consents to this assignment, ensuring that Crave Cookies has the ability to maintain control over the location. These provisions collectively ensure that Crave Cookies has mechanisms in place to protect its brand and operational standards, even if the franchisee encounters difficulties or the franchise agreement is terminated.

This arrangement is fairly common in franchising, as it allows the franchisor to maintain some control over the location of the franchise, which is critical for brand consistency and operational standards. However, it's important to note that while Crave Cookies has these rights, they also state that by executing the Rider, Crave Cookies does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.