Is the Collateral Assignment of Lease for an Apricot Lane franchise effective immediately?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| EIVED, the undersigned, | |
|---|---|
("Assignor") hereby assigns, transfers and sets over unto Country Visions, Inc., a California corporation ("Assignee") all of Assignor's right, title and interest as tenant in, to and under that certain lease, a copy of which is attached hereto as Schedule 1 (the "Lease") respecting the Premises at
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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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Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the Collateral Assignment of Lease is not effective immediately. It becomes effective only upon the occurrence of specific events, referred to as 'Events of Assignment.' These events include 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 after the franchisee fails to do so, or the franchisee failing to exercise an option to renew the lease at least 30 days before the deadline, unless the franchisor agrees otherwise in writing.
Country Visions, Inc., as the assignee, must provide written assumption of the right, title, and interest upon the occurrence of such an Event of Assignment for the collateral assignment to take effect. The franchisor has no liability or obligation related to the lease unless it takes possession of the premises and assumes the franchisee's obligations in writing.
The franchisee, as the assignor, represents and warrants that it has full power and authority to assign the lease and its interest and has not previously assigned or is obligated to assign its interest in the lease to any other party. The franchisee also agrees not to surrender, terminate, amend, or modify the lease without the prior written consent of the franchisor.