What is the 'Lease' defined as in the Amorino Collateral Assignment of Lease for an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS COLLATERAL ASSIGNMENT OF LEASE (this "Assignment") is entered into as of, |
|---|
| 20, between("Franchisee") |
| and |
| CPUSA, LLC, a |
| Delaware limited liability |
| company ("Franchisor") |
| Subject to the provisions hereof, Franchisee, to secure its obligations to the Franchisor under |
| the franchise agreement between the Franchisor and Franchisee for the operation of an Amorino |
| Store or Outlet, dated, 20 (the "Franchise Agreement") and under every |
| agreement between Franchisee and the Franchisor, hereby assigns, transfers and sets over unto |
| Franchisor and/or such person(s)/entity(ies) as Franchisor may from time-to-time designate all of |
| Franchisee's right, title and interest, whether as tenant or otherwise, in, to and under that certain |
| lease (the "Lease"), a copy is attached to this Assignment, dated, 20, between |
| Franchisee and ("Landlord"), respecting |
| that property commonly known as |
| (the "Premises"). The Franchisor shall have no liabilities or obligations of any kind arising from, |
| or in connection with, this Assignment, the Lease or otherwise (including, but not limited to, any |
| obligation to pay rent and/or other amounts) until and unless |
| the Franchisor, at the Franchisor's |
| option and in its sole discretion, takes possession of the Premises pursuant to the terms hereof and |
| expressly (and in writing) assumes the rights and obligations of Franchisee under the Lease. The |
| Franchisor is only responsible for those obligations accruing after the date of such assumption. |
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the "Lease" in the context of the Collateral Assignment of Lease is defined as a specific lease agreement between the franchisee and the landlord for the property where the Amorino store will be located. The document states that the franchisee assigns their rights, title, and interest in this lease to Amorino as security for their obligations under the Franchise Agreement.
This assignment ensures that Amorino has the option to take over the lease if the franchisee defaults on their obligations. However, Amorino is not liable for any obligations under the lease until they take possession of the premises and expressly assume the franchisee's rights and obligations in writing. This means the franchisee remains responsible for rent and other lease-related costs until Amorino assumes the lease.
For a prospective Amorino franchisee, this collateral assignment of lease is a critical component of securing a location. It allows Amorino to protect its interests and ensure continuity of the franchise business at that location if the franchisee fails to meet their obligations. Franchisees should carefully review the terms of the lease and the collateral assignment to understand their responsibilities and the circumstances under which Amorino might take over the lease. They should also ensure that the landlord is willing to consent to this arrangement, as it is a requirement for the franchise agreement.