What is being assigned to Baya Bar Franchise Systems, LLC as the Assignee?
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 the 2024 Baya Bar Franchise Disclosure Document, a Conditional Assignment of Lease is being assigned to Baya Bar Franchise Systems, LLC, as the Assignee. This agreement outlines the conditions under which the landlord will recognize Baya Bar Franchise Systems, LLC as the tenant, should the original tenant (the franchisee) default on the lease.
Specifically, the landlord agrees to notify Baya Bar Franchise Systems, LLC of any defaults by the franchisee and allows Baya Bar Franchise Systems, LLC the right, but not the obligation, to cure these defaults within 30 days. If Baya Bar Franchise Systems, LLC takes possession of the premises and confirms the assumption of the lease, the landlord will recognize them as the tenant, provided any non-monetary defaults are resolved within the 30-day period.
Furthermore, the landlord consents to Baya Bar Franchise Systems, LLC's ability to further assign the lease to another party, provided that the new party agrees to assume the tenant's obligations and is reasonably acceptable to the landlord. Upon such assignment, Baya Bar Franchise Systems, LLC would have no further liability under the lease. Baya Bar Franchise Systems, LLC is also permitted to enter the premises to de-identify it as a Baya Bar outlet if the tenant fails to do so after the termination of the Franchise Agreement or Lease, while also being responsible for repairing any damage caused during the de-identification process.