If Anago's Assignee assumes the Lease, which obligations of the Lease are they deemed to have assumed?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon exercise of this option, Assignee shall be deemed to be substituted as the tenant under the Lease in the place and stead of Assignor and shall be deemed to have assumed expressly all of the terms, covenants and obligations of the Lease therefore applicable to Assignor which arise after Assignee's assumption of the Lease and shall likewise be entitled to enjoy all of the rights and privileges granted to Assignor under the terms and conditions of the Lease.
Notwithstanding the foregoing, in the event Assignee exercises its rights under this paragraph 2, Assignor shall remain obligated under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if the Assignee exercises the option to assume the lease, they are considered to be substituted as the tenant in place of the Assignor. The Assignee is then deemed to have expressly assumed all the terms, covenants, and obligations of the lease applicable to the Assignor. This assumption applies to the terms, covenants, and obligations that arise after the Assignee's assumption of the lease. The Assignee is also entitled to enjoy all the rights and privileges granted to the Assignor under the terms and conditions of the lease.
However, even if the Assignee exercises its rights under this paragraph, the Assignor remains obligated under the lease. This means that the original tenant is still responsible for the lease even after the Assignee takes over.
In practical terms, this means that if Anago's Assignee assumes the lease, they step into the shoes of the original tenant (Assignor) and take on all responsibilities and rights under the lease agreement from that point forward. However, the original tenant remains ultimately liable, providing an additional layer of security for the landlord.