Who has the right to repossess the Bang Cookies shop facility?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the Assignee, which in this case is Bang Cookies as the franchisor, has the right and authority to take possession of the leased premises under specific circumstances. These circumstances include: a default by the Assignor (the franchisee) under the terms of the lease and failure to cure the default, a default by the Assignor under the Bang Cookies Shop Franchise Agreement and failure to cure, default of any agreement supporting or guaranteeing the Franchise Agreement, or the expiration or termination of the Franchise Agreement.
This means that if a Bang Cookies franchisee fails to meet their obligations under the lease agreement for their shop location, or if they default on the franchise agreement itself, Bang Cookies has the right to take possession of the property. This is a fairly standard clause in franchise agreements, as it protects the franchisor's investment and brand integrity by ensuring that franchise locations are operated in compliance with the agreed-upon terms. The franchisee's rights to the lease are contingent upon their adherence to the franchise agreement.
Furthermore, the Bang Cookies franchisee (Assignor) cannot terminate, surrender, or modify the lease without the prior written consent of Bang Cookies (Assignee). The franchisee must also elect and exercise all options to extend or renew the lease no less than 120 days before the option expires, unless Bang Cookies agrees otherwise in writing. If the franchisee fails to do so, Bang Cookies can act on behalf of the franchisee to effectuate extensions and renewals of the lease. This provision ensures that Bang Cookies maintains control over the leased premises and can secure the location for continued operation of a Bang Cookies shop.