Does All States M.E.D. Franchising, LLC assume any obligation as a tenant under the lease by executing the addendum?

According to the 2024 All States M.E.D. Franchise Disclosure Document, All States M.E.D. Franchising, LLC does not assume any liability with respect to the leased premises or any obligation as the tenant under the lease by executing the lease addendum. This means that the franchisee, not All States M.E.D., is responsible for fulfilling the obligations of the tenant as outlined in the lease agreement.

However, the lease addendum includes several provisions that affect the relationship between the landlord, the franchisee (tenant), and All States M.E.D. For example, the landlord must provide All States M.E.D. with copies of any default notices given to the tenant and gives All States M.E.D. the option to cure any default under the lease within 10 days after the period in which the tenant may cure the default. Also, the landlord must copy All States M.E.D. on any lease termination notices. If the landlord terminates the lease due to the tenant's default, All States M.E.D. has the option to enter into a new lease with the landlord under the same terms and conditions as the terminated lease, subject to the landlord's approval. To exercise this option, All States M.E.D. must notify the landlord within 10 days after receiving notice of the termination of the lease.

Additionally, if the Franchise Agreement between All States M.E.D. and the tenant is terminated during the lease term, the landlord and tenant consent to allow All States M.E.D. to assume the existing lease term, provided all defaults are cured and all payments are current. In such a case, the landlord will deliver possession of the leased premises to All States M.E.D. free and clear of any rights of the tenant or any third party. The landlord also consents to give All States M.E.D. the right to assign its interest in the lease or sublet the premises to another All States M.E.D. franchisee, with reasonable consent from the landlord.

These stipulations provide All States M.E.D. with certain rights and options regarding the leased premises, such as the ability to cure defaults, assume the lease, or enter into a new lease. These rights protect All States M.E.D.'s interest in maintaining a location for its brand and ensuring business continuity. While All States M.E.D. does not assume the tenant's obligations by executing the addendum, it retains the ability to step in and take over the lease under certain circumstances, which could be beneficial for both All States M.E.D. and a new franchisee in the event of a prior franchisee's default or termination.