What is Alloy Franchisor required to do upon taking possession of the Premises after assuming the lease?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisor, upon taking possession of the Premises, shall cure any default specified by Landlord within the timeframes noted herein and shall execute and deliver to Landlord its assumption of Tenant's rights and obligations under the Lease.
Franchisor shall pay, perform and be bound by all the duties and obligations of the Lease applicable to Tenant.
- (c) At or after the time Franchisor assumes Tenant's interests under the Lease, the Franchisor may, at any time, assign such interests or sublet the Premises to an ALLOY franchisee.
Any such assignment shall be subject to the prior written consent of the Landlord, which Landlord
shall not unreasonably withhold as it relates to a creditworthy franchisee who otherwise meets Franchisor's then-current standards and requirements for franchisees and agrees to operate the Facility as an ALLOY Facility pursuant to a Franchise Agreement with Franchisor. Upon receipt by Landlord of an assumption agreement pursuant to which the assignee agrees to assume the Lease and to observe the terms, conditions and agreements on the part of Tenant to be performed under the Lease, the Franchisor shall thereupon be released from all liability as tenant under the Lease from and after the date of assignment, without any need of a written acknowledgement of such release by Landlord.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if Alloy elects to assume the lease, it has specific obligations. Upon taking possession of the premises, Alloy must address any defaults specified by the landlord within the given timeframes. Additionally, Alloy is required to formally execute and deliver to the landlord its assumption of the tenant's rights and obligations under the lease.
Furthermore, Alloy is obligated to fulfill all duties and obligations outlined in the lease that are applicable to the tenant. This means Alloy steps into the shoes of the original tenant and must adhere to all the terms and conditions of the lease agreement.
After assuming the tenant's interests in the lease, Alloy has the option to assign these interests or sublet the premises to an Alloy franchisee. However, any such assignment is contingent upon obtaining prior written consent from the landlord. The landlord's consent cannot be unreasonably withheld if the assignee is a creditworthy franchisee who meets Alloy's standards and agrees to operate the facility as an Alloy facility under a Franchise Agreement with Alloy. Upon the landlord's receipt of an assumption agreement from the assignee, where the assignee commits to adhering to the lease terms, Alloy is released from all liability as the tenant under the lease from the assignment date forward, without needing written acknowledgment from the landlord.