What must the Assignee confirm to the Lessor in writing for Aw to be recognized as lessee under the Lease?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| (a) | Consents | to the | foregoing | Collateral | Assignment | of Lease | executed by ("Assignor") in favor of Rayyan Pizza Franchise |
|---|---|---|---|---|---|---|---|
| Assignor under the Lease within thirty (30) days of notice to Assignee its defaults; and | LLC ("Assignee), and agrees that if Assignee takes possession of the leased premises and confirms to Lessor the assumption of the Lease by Assignee as lessee under it in writing, Lessor shall recognize Assignee as lessee under the Lease, provided that Assignee cures the defaults of that Assignor has not cured |
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, for Aw (as Assignee) to be recognized as the lessee under the lease, Aw must confirm in writing to the Lessor the assumption of the Lease by Assignee as lessee under it. However, the lessor shall only recognize Aw as lessee if Aw cures the defaults of that Assignor that Assignor has not cured.
This means that if a franchisee of Aw wants to assign their lease to Aw, the lessor needs written confirmation from Aw that Aw is taking over the lease as the new lessee. This confirmation is a crucial step in the assignment process, ensuring that all parties are aware of the change in responsibility for the lease.
However, Aw's recognition as the new lessee is conditional. The lessor will only recognize Aw if Aw fixes any outstanding issues or breaches of the lease agreement that the original franchisee (Assignor) failed to resolve. This condition protects the lessor's interests by ensuring that any existing problems with the lease are addressed before a new party takes over. This could involve paying overdue rent, repairing damages to the property, or fulfilling any other obligations that the original franchisee neglected.
This requirement ensures a smooth transition of the lease and protects the lessor from potential losses due to unresolved issues. For a prospective Aw franchisee, this highlights the importance of due diligence when considering taking over an existing lease, as they may be responsible for curing any prior defaults.