If a Beef O Bradys tenant assigns the lease to a franchisee, what happens?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisor as Tenant. In the event Franchisor becomes the tenant under the Lease, whether by assignment or by exercise of its rights under its franchise documents, Landlord recognizes Franchisor as the Tenant under the Lease and Franchisor will, within 10 days of it becoming the Tenant, cure any then existing default in the payment of rent; provided however that Franchisor will not have any obligation to cure any default in the payment of rent as to which Franchisor was not given notice by Landlord within 20 days following the date such rent was due. The preceding sentence will not prevent Landlord from pursuing Tenant for such past due rent. Nothing in this Agreement and no exercise of any rights hereunder (including, without limitation, any curing of any Tenant's default by Franchisor) will be construed as creating on Franchisor any liability or obligation under the Lease or as Franchisor assuming any liability or obligation under the Lease; any assumption by Franchisor of any obligations under the Lease will only occur by specific written assumption executed by Franchisor. In the event Franchisor succeeds to the interest of Tenant under the Lease, Franchisor will not be responsible for any claims which Landlord may have against any prior Tenant under the Lease; except that Franchisor will pay any past due rental, subject to the limitations set out above. If Franchisor assumes the Lease, its liability under the Lease will extend only to the period of time that it is the Tenant under the Lease and will terminate upon any permitted assignment of the Lease by Franchisor.
- (d) Amendment. Landlord and Tenant will not cancel, terminate, modify or amend this Lease including, without limitation, Franchisor's rights under this Section, without Franchisor's prior written consent, except that, subject to Franchisor's cure rights, this paragraph will not prevent Landlord from exercising any right to cancel or terminate the Lease due to Tenant's default.
- (e) Successors. The benefits of this Section will inure to Franchisor's successors and assigns.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys FDD, if Beef O Bradys becomes the tenant under the lease, whether through assignment or by exercising its rights under the franchise documents, the landlord recognizes Beef O Bradys as the tenant. Within 10 days of becoming the tenant, Beef O Bradys must address any existing rent default, but only if the landlord notified Beef O Bradys of the default within 20 days of when the rent was due. This does not prevent the landlord from pursuing the original tenant for past due rent.
Beef O Bradys' assumption of the lease does not create any liability or obligation under the lease unless Beef O Bradys specifically executes a written assumption. If Beef O Bradys takes over the tenant's interest in the lease, it is not responsible for claims against any prior tenant, except for past due rental payments, subject to the notification limitations mentioned above.
If Beef O Bradys assumes the lease, its liability extends only to the period it is the tenant and ends upon any permitted assignment of the lease by Beef O Bradys. Additionally, the landlord and tenant cannot cancel, terminate, modify, or amend the lease, including Beef O Bradys' rights, without Beef O Bradys' prior written consent. However, the landlord can still cancel or terminate the lease due to the tenant's default, subject to Beef O Bradys' cure rights. The benefits of this section of the lease inure to Beef O Bradys' successors and assigns.