Does the Bang Cookies franchisor have an obligation to assume or renew 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, the franchisor does not have an obligation to assume or renew the lease for a franchise location. However, Bang Cookies does have the option to assume or renew the lease. 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, if Bang Cookies assumes the lease and subsequently assigns it to another approved franchisee, Bang Cookies will not be responsible for any obligations, debts, liabilities, or payments arising under the lease after the assignment date. The landlord agrees that the assignment or assumption of the lease by Bang Cookies does not require their consent, payment of any assignment fee, or result in increased rent or other fees.
As a Bang Cookies franchisee, you are responsible for selecting the site for your shop location and must obtain the franchisor's written approval. You must also retain an experienced commercial real estate broker to assist in locating and acquiring the site. Bang Cookies does not have any obligation to assist in site selection or lease negotiation.