Is Beauty Bungalows liable under the lease before the lease is assigned to and assumed by Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- Landlord acknowledges that Company is not a party to the Lease and will have no liability or responsibility under the Lease unless and until the Lease is assigned to, and assumed by, Company.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Beauty Bungalows Franchising, LLC is not liable or responsible under the lease agreement until the lease is officially assigned to and assumed by them. This means that before the assignment, the franchisee is solely responsible for all lease obligations.
This provision protects Beauty Bungalows from any liabilities associated with the lease prior to taking over the lease. It clarifies that the landlord cannot hold Beauty Bungalows accountable for the franchisee's actions or debts related to the property before the assignment date.
For a prospective Beauty Bungalows franchisee, this clause highlights the importance of understanding and managing the lease agreement independently. Franchisees should ensure they can meet all lease obligations, as Beauty Bungalows will not be responsible for any issues arising before the lease is transferred to them. This also means that if the franchisee defaults on the lease before assignment, it will be the franchisee's responsibility to resolve the matter.