What consideration is All Dogs Unleashed required to pay for the assignment of a lease?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
n such 30-day period, then Franchisor will commence and proceed to cure the default within such time as is reasonably necessary to cure the default. If Franchisor elects to assume the Lease, Landlord agrees to recognize Franchisor as the tenant under the Lease and Franchisee will no longer have any rights there under.
- (6) Franchisee will be permitted to assign the Lease to Franchisor or its affiliates upon the expiration (without renewal) or earlier termination of the Franchise Agreement and the Landlord hereby consents to such assignment and agrees not to impose or assess any assignment fee or similar charge or accelerate rent under the Lease in connection with such assignment, or require Franchisor to pay any pa
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed FDD, if the franchise agreement expires or is terminated early, the franchisee is permitted to assign the lease to All Dogs Unleashed or its affiliates. In such a case, the landlord agrees not to impose any assignment fee or similar charge, nor accelerate rent under the lease. Additionally, the landlord cannot require All Dogs Unleashed to pay any past due rent or other financial obligations that the franchisee owes. The landlord will look solely to the franchisee for any rents or other financial obligations owed before the assignment.
This clause protects All Dogs Unleashed from assuming the franchisee's debts or incurring extra costs related to the lease assignment. It ensures a smooth transition of the lease to All Dogs Unleashed without financial burdens related to the franchisee's prior obligations. This is a benefit for All Dogs Unleashed, as it can take over the lease without unexpected expenses.
For a prospective All Dogs Unleashed franchisee, this means that upon the expiration or termination of their franchise agreement, All Dogs Unleashed has the option to take over the lease of the Commercial Training Facility. If All Dogs Unleashed exercises this option, the franchisee is obligated to assign their interest in the lease to All Dogs Unleashed or its designee. Furthermore, if All Dogs Unleashed or its designee assumes the lease, title to all leasehold improvements will automatically transfer to the assignee without any additional payment.