What must the Alloy Franchisor 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, upon taking possession of the premises, Alloy must cure any default specified by the landlord within the timeframes noted in the lease agreement. Additionally, Alloy must execute and deliver to the landlord its assumption of the tenant's rights and obligations under the lease.
Alloy is obligated to pay, perform, and be bound by all the duties and obligations of the lease applicable to the original tenant. This means Alloy steps into the shoes of the original tenant and is responsible for fulfilling all lease terms, including rent payments, maintenance, and other requirements outlined in the lease agreement.
Furthermore, the document states that Alloy has the right to assign its interests in the lease or sublet the premises to an Alloy franchisee at any time after assuming the tenant's interests. However, any such assignment is subject to the prior written consent of the landlord, which the landlord shall not unreasonably withhold, especially 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, Alloy is released from all liability as a tenant under the lease from the date of assignment, without needing written acknowledgment from the landlord.