According to the assignment agreement, who is considered the 'Assignee' for Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
| property known as | to that Conditional Assignment of Lease from (Assignor) to Baya Bar Franchise Systems, LLC (Assignee) dated for the |
|---|---|
| The undersigned Landlord under the aforedescribed Lease further hereby: | |
| (a) | Agrees to notify Assignee in writing of and upon the failure of Assignor to cure any default by Assignor under the Lease; |
| (b) | Agrees that Assignee shall have the right, but shall not be obligated, to cure any default by Assignor under the Lease within 30 days after delivery by Landlord of notice thereof in accordance with paragraph (a) above; |
| (c) | Consents to the foregoing Conditional Assignment and agrees that if Assignee takes possession of the Premises demised by the Lease and confirms to Landlord the assumption of the Lease by Assignee as tenant thereunder, Landlord shall recognize Assignee as tenant under the Lease, provided that Assignee cures within the 30-day period the non-monetary defaults, if any, of Assignor under the Lease; |
| (d) | Agrees that Assignee may further assign the Lease to a person, firm or corporation who shall agree to assume the tenant's obligations under the Lease and who is reasonably acceptable to Landlord and upon such assignment Assignee shall have no further liability or obligation under the Lease as assignee, tenant or otherwise. |
| (e) | Permits Assignee to enter upon the Premises without being guilty of trespass or any other crime or tort to de-identify the Premises as a Baya Bar outlet if Tenant fails to do so following termination of the Franchise Agreement or Lease, provided that Assignee shall repair any damage caused thereby. |
| DATED: | LANDLORD: |
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, in the context of the Conditional Assignment of Lease, Baya Bar Franchise Systems, LLC is designated as the 'Assignee'. This means that in certain situations, such as the original franchisee (Assignor) failing to meet their lease obligations, the landlord agrees to notify Baya Bar Franchise Systems, LLC, giving them the option to correct the default within 30 days.
This arrangement protects Baya Bar's interests by ensuring that a location can continue operating as a Baya Bar even if the original franchisee runs into difficulties with their lease. It also provides Baya Bar with the right, but not the obligation, to take over the lease and maintain the franchise at that location.
Furthermore, the landlord agrees that Baya Bar can further assign the lease to another party who is acceptable to the landlord, relieving Baya Bar of further liability. Baya Bar also has permission to enter the premises to de-identify it as a Baya Bar outlet if the franchisee fails to do so after the termination of the Franchise Agreement or Lease, ensuring the brand's image is maintained. This is a fairly standard clause in franchise agreements, as it protects the franchisor's brand and interests in the event of franchisee default or termination.