What are the 'rents reserved under the Sublease' in the context of the Bananas Smoothies Frozen Yogurt agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Sublessee will pay any and all rents and other charges due and owing under the Lease directly to the Landlord, pursuant to the terms and conditions of the Lease. The fees due under the Franchise Agreement will be paid to Franchisor pursuant to the terms of the Franchise Agreement.
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- Sublessee acknowledges that Sublessor and/or its affiliates has/have a long- standing relationship with the Landlord under the Lease. If, as a result of said relationship, Sublessor achieves a rent
credit or other savings under the Lease, Sublessor will retain the benefit of said credit and/or savings, and Sublessee will continue to pay Landlord the amounts due and owing on the attached Lease.
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- The Sublessee covenants with the Sublessor to perform as follows:
- (a) Pay rent as aforesaid; and
- (b) Perform and observe all of the covenants on the part of the Sublessor as tenant under the provisions of the Lease and to keep the Sublessor fully and completely indemnified against all actions, claims, expenses and demands in respect to each and every of such covenants; and
- (c) Not assign, sublet or part with possession of all or any part of the Demised Premises without the prior consent in writing of the Sublessor, which consent may be unreasonably withheld, or if granted, may be granted by the Sublessor upon such terms and conditions as the Sublessor may see fit; subject always to the prior consent of the Landlord in accordance with, and subject to, the terms of the Lease; and
- (d) Pay when due all continuing franchise fees and advertising contributions as required by Sublessee's Franchise Agreement; such payments being characterized as additional rent under this Sublease Agreement; and
- (e) Perform all of the covenants contained in the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the sublessee is required to pay all rents and other charges due under the lease directly to the landlord, following the terms and conditions outlined in the lease. Additionally, the sublessee must pay continuing franchise fees and advertising contributions as required by their Franchise Agreement; these payments are considered additional rent under the Sublease Agreement.
Bananas Smoothies Frozen Yogurt's sublessor may have a pre-existing relationship with the landlord, potentially leading to rent credits or savings. However, the sublessee is not entitled to these benefits; the sublessor retains any such credits or savings, and the sublessee continues to pay the landlord the full amounts specified in the attached lease.
Furthermore, the sublessee is obligated to fulfill all covenants outlined in the Franchise Agreement. They must also indemnify the sublessor against any actions, claims, expenses, and demands related to the sublessor's obligations as the tenant under the lease. The sublessee cannot assign, sublet, or part with possession of the Demised Premises without prior written consent from both the sublessor and the landlord, with the sublessor having the right to withhold consent or impose terms and conditions, subject to the landlord's approval as per the lease terms.
In the event that Everything Yogurt Brands, LLC, the franchisor, takes over the lease, it has the right to assign or sublease the premises to another franchisee without needing the landlord's consent. However, Everything Yogurt Brands, LLC is not obligated to assume the lease and has no liability unless it explicitly agrees to do so. This arrangement ensures that the franchisee is responsible for rent and other charges as defined in both the lease and the franchise agreement, while also clarifying the roles and potential benefits for the sublessor.