What is the definition of 'Lease' according to the Collateral Assignment of Lease for Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| KNOW ALL MEN BY THESE PRESENTS, that, a ("Assignor"), does hereby assign, transfer and set over unto |
|---|
| Rayyan Pizza Franchise LLC, an Illinois limited liability company (the "Assignee"), all of Assignor's |
| right, title and interest as tenant in, to and under that certain lease or sublease (collectively, the |
| "Lease") dated, 20 between Assignor, as tenant, and |
| as landlord or sublessor, |
| for the premises known as |
| This Assignment is for collateral purposes only, and except as specified herein, Assignee shall |
| have no liability or obligation of any kind whatsoever arising from or in connection with this |
| Assignment or the lease unless Assignee shall elect to assume the rights and obligations of Assignor |
| under the Lease. Assignee shall make such election by mailing written notice of such election to |
| Lessor and Assignor by United States Certified Mail, duly addressed and posted or by reputable |
| overnight commercial delivery service. |
| Assignor represents and warrants to Assignee that it has full power and authority to assign the |
| Lease and its interests therein and that Assignor has not previously and is not obligated to, assign or |
| transfer any of its interests in the Lease or the premises demised thereby. |
| This Assignment is given to Assignee to secure the faithful performance by Assignor of the |
| terms and conditions of the Franchise Agreement dated the day of, |
| 20, between Assignor and Assignee (the "Franchise Agreement"). Upon a default by Assignor |
| under the Lease, a default by Assignor under the Franchise Agreement, or the expiration or |
| termination of the Franchise Agreement, Assignee shall have the right and is hereby empowered, |
| upon ten (10) days' notice to the Assignor, to assume the above-referenced Lease and take possession |
| of the premises. |
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the term 'Lease' within the context of the Collateral Assignment of Lease refers to a lease or sublease agreement. This agreement is dated sometime in 20--, and is between the 'Assignor' (the franchisee) as the tenant, and an unnamed party as the landlord or sublessor. The lease pertains to the specific premises where the Aw restaurant will operate.
The Collateral Assignment of Lease is a document where the franchisee assigns their rights and interests in the lease to Rayyan Pizza Franchise LLC. However, this assignment is solely for collateral purposes, meaning Aw only assumes the franchisee's lease obligations if they choose to do so by providing written notice to both the lessor and the franchisee. This protects Aw's interests in the event the franchisee defaults on the Franchise Agreement or the lease itself.
The franchisee represents and warrants that they have the full authority to assign the lease and have not previously assigned it to anyone else. This assignment secures the franchisee's faithful performance of the Franchise Agreement. If the franchisee defaults under either the lease or the Franchise Agreement, or upon the expiration or termination of the Franchise Agreement, Aw has the right to assume the lease after providing ten days' notice to the franchisee, allowing Aw to take possession of the premises.