What is the purpose of the Collateral Assignment of Lease for Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
tement that is addressed to Assignor and the landlord for the Leased Premises, is delivered by Assignee to Assignor and the landlord for the Leased Premises, is signed by an officer of Assignee, and that expressly states that Assignee is assuming all rights and interests in and to the Lease pursuant to this Assignment; and (b) Assignee takes possession of the Leased Premises pursuant to the terms hereof, and Assignee assumes the obligations of Assignor under the Lease.
Assignor represents that Assignor possesses full power and authority to enter into this Assignment and that at no time prior to executing this Assignment has Assignor assigned and/or transferred Assignor's interests and/or rights in or to the Lease and/or the Leased Premises.
Assignee has the right and possesses full power and authority to take possession of the Leased Premises, to eject and expel Assignor from possession and occupancy of the Leased Premises and to terminate Assignor's right, title and interest in and to the Lease in the event of: (a) a default by Assignor under the terms of the Lease and Assignor's failure to timely cure such default, assuming that such default is capable of curing; (b) a default by Assignor (in Assignor's capacity as a Bang Cookies Shop franchisee) under the terms and conditions of the Bang Cookies Shop Franchise Agreement between Assignor, as franchisee, and Assignee, as franchisor (the "Franchise Agreement"), and Assignor's failure to timely cure such default, assuming that such default is capable of curing; (c) upon default of any agreement supporting or guaranteeing the Franchise Agreement; or (d) the expiration or termination of the Franchise Agreement.
Assignor agrees that Assignor will not and shall not permit, grant or suffer any termination, surrender or modification of the Lease without the prior written consent of Assignee. Throughout the term of the
Franchise Agreement, Assignor shall elect and exercise all options to extend the terms of the or renewal of the Lease not less than 120 days prior to the last day that the option must be exercised unless Assignee otherwise agrees in writing. Should Assignor fail to comply with the foregoing, Assignor does hereby appoint Assignee (subject to Assignees acceptance and invocation of such right) to act on behalf of Assignor for the purpose of effectuating extensions and renewals of the Lease.
| Name | Principal Business Address | Telephone Number | ||
|---|---|---|---|---|
| George Kuan | 550 Industrial Road, Unit D, Carlstadt, New Jersey 07072 | 888-834-8885 |
Franchise Agreement – Exhibit 6
Assignment of Telephone Numbers and Digital Media Accounts
ASSIGNMENT OF TELEPHONE NUMBERS AND DIGITAL MEDIA ACCOUNTS
(for the benefit of Bang Cookies Franchise LLC and its assigns)
THIS ASSIGNMENT OF TELEPHONE NUMBERS AND DIGITAL MEDIA ACCOUNTS ASSIGNMENT ("Assignment") is entered into between ___________________ (the "Assignor") and Bang Cookies Franchise LLC and its successors and assigns (the "Assignee").
WHEREAS, Assignee is the franchisor of the Bang Cookies Shop franchise system (the "Bang Cookies Shop Franchise System");
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Collateral Assignment of Lease is an agreement where the franchisee (Assignor) assigns their rights and interests in the lease of the premises to Bang Cookies Franchise LLC (Assignee). This assignment serves as a security measure for Bang Cookies, allowing them to take control of the leased premises under specific circumstances.
Specifically, Bang Cookies, as the Assignee, has the right to take possession of the leased premises and terminate the franchisee's rights to the lease if the franchisee defaults on the terms of the lease, defaults on the Franchise Agreement, defaults on any agreement supporting or guaranteeing the Franchise Agreement, or upon the expiration or termination of the Franchise Agreement. The franchisee cannot terminate, surrender, or modify the lease without Bang Cookies's written consent and must exercise all options to extend or renew the lease at least 120 days before the option expires, unless Bang Cookies agrees otherwise. If the franchisee fails to do so, Bang Cookies has the right to act on behalf of the franchisee to effectuate extensions and renewals of the lease.
Furthermore, Bang Cookies has the option, but not the obligation, to assume or renew the lease and occupy the leased premises, including the right to sublease to another Bang Cookies franchisee. If Bang Cookies assumes the lease and subsequently assigns it to another approved franchisee, Bang Cookies will not be responsible for any obligations arising under the lease after the assignment date. The landlord's consent is not required for the assignment or assumption of the lease by Bang Cookies, and no assignment fee or rent increase will result from such actions. This assignment becomes effective automatically upon the termination or expiration of the Franchise Agreement, and third parties can rely on Bang Cookies's declaration as proof of termination or expiration.
This Collateral Assignment of Lease ensures that Bang Cookies can maintain control over the location of its franchise operations, even if a franchisee defaults or the franchise agreement is terminated. It protects Bang Cookies's interests by allowing them to continue operating the location or transfer it to another franchisee, thus preserving the brand's presence and minimizing disruptions to the business.