Is Baya Bar obligated to cure any default by the Assignor under the lease?
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, Baya Bar as the Assignee, is not obligated to cure any default by the Assignor under the lease. However, if the Assignor fails to cure any default under the lease, the Landlord is required to notify Baya Bar in writing.
Upon notification, Baya Bar has the right to cure the default within 30 days after receiving notice from the Landlord. If Baya Bar takes possession of the premises and confirms the assumption of the lease, Baya Bar must cure any non-monetary defaults of the Assignor within the same 30-day period.
Baya Bar also has the right to further assign the lease to another party who agrees to assume the tenant's obligations, provided that the Landlord finds the new party reasonably acceptable. Upon such assignment, Baya Bar will have no further liability under the lease.