If Apricot Lane cures a default under the lease, what must the Assignor do?
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.
day that such option must be exercised, unless Assignee otherwise agrees in writing. DATED:
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, if Apricot Lane (referred to as Assignee in this context) cures a default by the franchisee (Assignor) under the lease, the Assignor must have received notice of the default from the lessor or its representative. Furthermore, the Assignor must have failed or refused to cure the default within the time frame specified in the notice. This condition is part of the "Event of Assignment" terms within a Collateral Assignment, which becomes effective only upon the occurrence of such an event and the Assignee's written assumption of rights.
This arrangement protects Apricot Lane by allowing them to step in and rectify lease defaults to maintain control over the location and operation of the franchise. It also ensures that the franchisee is given an opportunity to correct the default themselves before Apricot Lane intervenes. The franchisee, as the Assignor, must be aware of these conditions and understand that their failure to address lease defaults can lead to Apricot Lane taking over the lease.
It is important to note that Apricot Lane has no liability or obligation related to the lease unless they take possession of the premises and formally assume the franchisee's obligations in writing. The franchisee also warrants that they have the authority to assign the lease and have not previously assigned it to another party. Additionally, the franchisee cannot surrender, terminate, amend, or modify the lease without Apricot Lane's prior written consent. The franchisee must also notify Apricot Lane of any decisions regarding lease renewal options at least 30 days before the deadline.
This section of the FDD outlines the circumstances under which Apricot Lane can assume control of the lease due to a franchisee's default, emphasizing the importance of the franchisee's compliance with the lease terms and communication with Apricot Lane regarding lease-related matters.