If Crave Cookies becomes the lessee, can it assign or sublease the lease to another Crave Cookies franchisee?
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 Crave Cookies' 2025 Franchise Disclosure Document, if Crave Cookies becomes the lessee of a leased premises, it has the right to assign or sublease the lease to another Crave Cookies franchisee. This provision is included in the Franchisor Rider, which is incorporated into the lease agreement between the landlord and the franchisee. In the event of any conflict between the lease and the Franchisor Rider, the terms of the Franchisor Rider will take precedence.
This clause provides Crave Cookies with flexibility in managing the leased premises, especially if the original franchisee's agreement is terminated. It allows Crave Cookies to maintain a presence at the location by transferring the lease to another franchisee, ensuring continued operation of a Crave Cookies business at that site.
For a prospective franchisee, this is a beneficial term as it ensures that Crave Cookies has the ability to step in and maintain the lease, potentially offering opportunities for existing franchisees to expand or for new franchisees to take over an existing location. However, the specific terms and conditions of such assignment or sublease would be governed by Article XIII of the Lease, which is not detailed in this excerpt.