What must Bang Cookies Franchise LLC do to assume all rights and interests in the Lease?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor will have the option, but not the obligation, to assume or renew the Lease and the occupancy of the Leased Premises, including the right to sublease to another Franchisee of the Bang Cookies Franchise System, for all or any part of the remaining term of the Lease and, in connection with said assumption, Franchisor will not be obligated to pay to Landlord more than two months past due rent, real estate taxes and common area maintenance charges. In the event Franchisor assumes Tenant's leasehold interest in the Lease pursuant to the terms of this Agreement and subsequently assigns the Lease and its leasehold interest to a Bang Cookies franchisee approved by Landlord, Franchisor shall not be responsible for any obligations, debts, liabilities or payments arising and/or accruing under the Lease after the effective date of such assignment. Landlord agrees that any assignment of the Lease and Tenant's leasehold interests in the Lease by Tenant to Franchisor and/or assumption by Franchisor of the Lease and such leasehold interests shall not require Landlord consent and shall not require any payment of any assignment fee or similar charge or result in any increase in rent or other fees as a result of such assignment and/or assumption.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Bang Cookies Franchise LLC has the option to assume or renew the lease for a location. If Bang Cookies chooses to assume the lease, it will not be obligated to pay the landlord more than two months of past due rent, real estate taxes, and common area maintenance charges.
Furthermore, the landlord agrees that the assignment of the lease to Bang Cookies, or the assumption of the lease by Bang Cookies, does not require their consent. The landlord also agrees that they will not require any payment of assignment fees, similar charges, or increases in rent or other fees as a result of the assignment or assumption of the lease.
This arrangement benefits a Bang Cookies franchisee because it outlines the conditions under which the franchisor can take over the lease, potentially preventing disruption to the business. It also protects the franchisee from unexpected costs or consent requirements from the landlord during such a transition.