Does the addendum to the lease agreement make Crisp & Green a guarantor to the lease?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Landlord acknowledges and agrees that (i) the provisions of this Addendum are required pursuant to the Franchise Agreement and that Tenant may not lease the Premises without this Addendum, (ii) Tenant is not an agent or employee of Franchisor and Tenant has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor and that Landlord has entered into this Addendum with full understanding that it creates no duties, obligations, or liabilities of or against Franchisor or any affiliate of Franchisor, and (iii) nothing contained in this Addendum makes Franchisor or its affiliates a party or guarantor to the Lease, and does not create any liability or obligation of Franchisor or its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the addendum to the lease agreement explicitly states that it does not make Crisp & Green a guarantor to the lease. The Landlord acknowledges that the addendum is required for the Tenant to lease the premises under the Franchise Agreement. However, the addendum clarifies that the Tenant is not an agent or employee of Crisp & Green and cannot bind Crisp & Green in any way.
Specifically, the addendum states that it creates no duties, obligations, or liabilities for Crisp & Green or its affiliates. This means that the landlord understands and agrees that Crisp & Green is not responsible for the tenant's obligations under the lease. This clause protects Crisp & Green from being held liable for the franchisee's lease obligations.
This provision is beneficial for Crisp & Green as it limits their financial exposure related to individual franchise locations. For a prospective franchisee, this means they cannot rely on Crisp & Green to cover their lease obligations, reinforcing the importance of their own financial stability and lease management.