What specific document outlines the obligations secured by the Collateral Assignment of Lease for an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
liability company
ATTACHMENT D
COLLATERAL LEASE ASSIGNMENT
COLLATERAL ASSIGNMENT OF LEASE
| 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. |
The Franchisee agrees to indemnify and hold harmless the Franchisor from and against all claims and demands of any type, kind or nature made by the Landlord or any third party that arise out of or are in any manner connected with Franchisee's use and occupancy of the Premises subject to the Lease.
The Franchisee represents and warrants to the Franchisor that Franchisee has full power and authority to assign the Lease and its interest in the Lease.
The Franchisor will not take possession of the Premises until and unless Franchisee defaults (and/or until there is a termination, cancellation, rescission or expiration of Franchisee's rights) under the Lease, any sublease, the Franchise Agreement or other agreement between Franchisee and the Franchisor (or any affiliate). In such event, the Franchisor (or its designee) shall have the right and option, and is hereby empowered, (but has no obligation) to take possession of the Premises, expel Franchisee therefrom. Franchisee shall then have no further right, title or interest in or under the Lease or to the Premises, all such rights thereby passing to the Franchisor or its designee, in each case without the Landlord's further consent.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the obligations secured by the Collateral Assignment of Lease are outlined within the Collateral Assignment of Lease document itself. This document, as detailed in Item 22, is entered into by the franchisee and CPUSA, LLC, the franchisor, to secure the franchisee's obligations under the franchise agreement. The agreement is for the operation of an Amorino store or outlet.
The Collateral Assignment of Lease involves the franchisee assigning, transferring, and setting over to Amorino all rights, title, and interest in the lease agreement with the landlord. This assignment is meant to secure the franchisee's obligations to Amorino under the franchise agreement and any other agreements between them. However, Amorino has no liabilities or obligations arising from this assignment, the lease, or otherwise until Amorino takes possession of the premises and expressly assumes the franchisee's rights and obligations under the lease.
Furthermore, the landlord's approval is required, indicating their agreement to notify Amorino of any default by the franchisee, allowing Amorino the right to cure any default within 30 days of written notice, and consenting to Amorino taking possession of the premises. The landlord also agrees to recognize Amorino as the tenant if Amorino confirms the assumption of the lease and that Amorino may further assign the lease or sublet the premises to another Amorino franchise owner acceptable to the landlord. This approval applies to any subsequent Amorino franchise owner, and the landlord agrees to provide a copy of the Collateral Lease Assignment to any prospective purchaser of the premises.