Is Crave Cookies a third-party beneficiary of the Franchisor Rider?

According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies is indeed a third-party beneficiary of the Franchisor Rider. Specifically, the Rider to Lease Agreement states that Crave Cookies, as the Franchisor, has the right to enforce the terms outlined in the rider against both the landlord and the tenant. This provision grants Crave Cookies direct legal standing to ensure compliance with the terms of the Rider, even though they are not a direct party to the lease agreement itself.

This third-party beneficiary status provides Crave Cookies with significant protection and control over the leased premises where a franchise operates. For example, if the landlord or tenant violates the terms of the Rider, Crave Cookies can take legal action to enforce compliance. This can include ensuring the premises are used only for a Crave Cookies business, receiving notices of default, and having the option to cure defaults or enter into a new lease if the original lease is terminated.

This clause is beneficial for Crave Cookies as it allows them to maintain brand consistency and operational standards across all franchise locations. By having the ability to enforce the terms of the Rider, Crave Cookies can protect its brand image and ensure that franchisees adhere to the agreed-upon standards. This also provides a safety net, allowing Crave Cookies to step in and potentially take over a lease if a franchisee defaults, thereby preserving the location for continued operation under the Crave Cookies brand.