What is the Sublessee's obligation regarding the Lease in the Bananas Smoothies Frozen Yogurt Sublease Agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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 has several obligations under the Sublease Agreement related to the original Lease. The Sublessee must pay rent as specified in the agreement. Additionally, the Sublessee is required to perform and adhere to all covenants outlined for the Sublessor (as the tenant) in the original Lease. This includes keeping the Sublessor fully indemnified against any actions, claims, expenses, and demands related to these covenants. The Sublessee is essentially stepping into the shoes of the Sublessor concerning the responsibilities outlined in the original Lease.
Furthermore, the Sublessee cannot assign, sublet, or relinquish possession of any part of the Demised Premises without obtaining prior written consent from the Sublessor. This consent can be withheld at the Sublessor's discretion or granted under specific terms and conditions set by the Sublessor, and is always subject to the Landlord's prior consent according to the terms of the Lease. The Sublessee is also obligated to pay all continuing franchise fees and advertising contributions as required by the Franchise Agreement; these payments are considered additional rent under the Sublease Agreement. Finally, the Sublessee must fulfill all covenants contained within the Franchise Agreement itself.
In practical terms, this means a Bananas Smoothies Frozen Yogurt franchisee taking over a subleased location must not only pay rent and franchise fees but also ensure they comply with all the terms of the original lease agreement between the Sublessor and the Landlord. This includes restrictions on assigning the lease to someone else. The franchisee should carefully review both the Sublease Agreement and the original Lease to fully understand their obligations and potential liabilities. They should also maintain good standing under the Franchise Agreement to avoid any breaches of the Sublease Agreement.