What constitutes abandonment of the premises by the Assignor in the context of an Apricot Lane franchise collateral assignment?
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.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the abandonment of premises by the assignor is considered an Event of Assignment in the context of a collateral assignment. This is triggered when the Apricot Lane franchisee (the assignor) vacates the store location.
An Event of Assignment allows the Assignee to exercise their rights. The assignee's rights, title, and interest are subject to their written assumption of such rights upon the occurrence of the Event of Assignment.
Other events that can trigger an assignment include the termination or nonrenewal of the Franchise Agreement, the Assignee curing a default by the Assignor under the lease after the Assignor fails or refuses to cure it, and the Assignor's failure to exercise any option to renew the lease at least thirty days before the deadline for exercising such option.