What is being assigned in the Collateral Assignment of Lease for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Effective only upon the occurrence of one of the Events of Assignment as set forth below and subject to Assignee's written assumption of such right, title and interest upon the occurrence of such an Event of Assignment.
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- An Event of Assignment for purposes of this Collateral Assignment shall include the following:
- (a) The termination or nonrenewal for any reason of the Franchise Agreement between Assignee and Assignor for the operation at the Premises of a specialty retail store under the service mark licensed by Assignee (the "Franchise Agreement");
- (b) The abandonment of the Premises by the Assignor;
- (c) Any cure by Assignee of a default by Assignor under the Lease effected after notice to Assignor of such default by the lessor or its authorized representative and Assignor's failure or refusal to cure such default within the time required in such notice;
- (d) Assignor's failure to exercise any option to renew the Lease at least thirty (30) days before the last day for exercising such option.
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- Assignee shall have no liability or obligation of any kind whatsoever arising from or in connection with the Lease or this Assignment unless Assignee takes possession of the Premises pursuant an assignment affected hereunder and assumes in writing the obligations of Assignor under the Lease.
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- Assignor represents and warrants to Assignee that it has full power and authority to so assign the Lease and its interest therein and that Assignor has not previously assigned and is not obligated to assign or transfer any of its interest in the Lease or the Premises to any other party.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the Collateral Assignment of Lease involves the assignment of the lease and the tenant's interest within it. This assignment becomes effective only upon specific events, such as the termination or nonrenewal of the Franchise Agreement, abandonment of the premises by the franchisee, the franchisor curing a default by the franchisee under the lease, or the franchisee failing to exercise an option to renew the lease.
Country Visions, Inc., as the assignee, is not liable or obligated under the lease unless it takes possession of the premises and assumes the franchisee's obligations in writing. The franchisee confirms they have the authority to assign the lease and has not previously assigned it to another party.
This arrangement protects Apricot Lane by ensuring they can maintain control of the store location if a franchisee fails to meet their obligations. It allows Apricot Lane to continue operating a store at that location, either directly or through another franchisee, thus preserving the brand's presence and minimizing disruption. The franchisee, as the assignor, warrants their right to assign the lease, providing assurance to Apricot Lane.