If requested by Crave Cookies Franchising, what must a franchisee do with the proposed lease?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Crave Cookies Franchising, Franchisee must submit the proposed lease to Crave Cookies Franchising for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Crave Cookies Franchising.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if requested by Crave Cookies Franchising, a franchisee must submit the proposed lease to Crave Cookies Franchising for written approval. The lease term, including renewals, must be no less than the term of the Franchise Agreement. Additionally, the franchisee must use commercially reasonable efforts to get the landlord to sign a rider to the lease in the form required by Crave Cookies Franchising.
This requirement ensures that Crave Cookies maintains some control over the location of its franchises and that the lease terms are compatible with the franchise agreement. This is a fairly standard practice in franchising, as the location and lease terms can significantly impact the success of the business.
A prospective franchisee should carefully review the form of lease rider required by Crave Cookies to understand its implications. They should also be prepared to negotiate with the landlord to obtain the rider, which may not always be possible. The franchisee bears the risk of securing suitable lease terms and the landlord's agreement to the rider, which could potentially delay or complicate the opening of the Crave Cookies franchise.