If the lease is assigned to Aerus, can the landlord impose an assignment fee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained in this Lease, in the event Company becomes the tenant under the Lease, Company is expressly authorized, without the consent of the Landlord, to assign or sublet the Leased Premises to any authorized distributor, franchisee or affiliate of Company, provided such assignment or subletting is specifically subject to the terms of the Lease.
Company may also assign the Lease to a financial institution for collateral purposes in connection with any financing transaction.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus FDD, if Aerus becomes the tenant under the lease, Aerus is authorized to assign or sublet the leased premises without the landlord's consent. This assignment or subletting must be specifically subject to the terms of the lease.
Aerus also has the right to assign the lease to a financial institution for collateral purposes in connection with any financing transaction. This provision aims to provide Aerus with flexibility in managing the lease and its business operations.
This clause protects Aerus by ensuring they can transfer the lease to another party, such as a franchisee, distributor, or financial institution, without needing the landlord's approval, as long as the assignment adheres to the original lease terms. However, the FDD does not explicitly state whether the landlord can impose an assignment fee in such a scenario. A prospective franchisee should clarify this point with Aerus to understand potential costs associated with lease assignments.