If requested by Crave Cookies Franchising, what must a franchisee do with the proposed lease for the Crave Cookies location?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ing or acceptance of a site is not a representation or warranty that the Business will be successful, and Crave Cookies Franchising has no liability to Franchisee with respect to the location of the Business.**
- 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 for their location to Crave Cookies Franchising for written approval. The lease term, including any renewal options, must be no less than the term of the Franchise Agreement itself. Furthermore, the franchisee must use commercially reasonable efforts to get the landlord to sign a rider to the lease, using the form that Crave Cookies Franchising requires.
This requirement ensures that Crave Cookies maintains some control over the locations of its franchises and that the lease terms are compatible with the franchise agreement. By requiring a lease term that matches or exceeds the franchise agreement, Crave Cookies protects its interests in the event that a franchisee's business is not successful or if the franchisee decides to leave the system. The rider to the lease likely contains provisions that protect Crave Cookies's interests, such as the right to enter the premises or to approve any alterations to the property.
For a prospective Crave Cookies franchisee, this means they need to be prepared to share their lease agreement with Crave Cookies and potentially negotiate with their landlord to include a rider in the lease. This could add time and complexity to the leasing process. Franchisees should factor in these requirements when evaluating potential locations and negotiating lease terms. They should also understand the terms of the rider and how it might affect their rights and obligations under the lease.
It is important to note that Crave Cookies's advice or acceptance of a site does not guarantee the success of the business, and Crave Cookies has no liability to the franchisee regarding the location of the business. This highlights the importance of franchisees conducting their own due diligence when selecting a location and not solely relying on the franchisor's approval.