What conditions must a party meet to whom the Assignee further assigns the lease for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned Lessor under the afore-described Lease 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 will have the right, but not the obligation, to cure any default by Assignor under the Lease within thirty (30) days after delivery by Lessor of notice thereof in accordance with paragraph (a) above;
- (c) Consents to the foregoing Conditional Assignment of Lease and agrees that if Assignee takes possession of the premises demised by the Lease and confirms to Lessor the assumption of the Lease by Assignee as tenant thereunder, Lessor will recognize Assignee as tenant under the Lease, provided that Assignee cures within the thirty (30) day period any defaults of Assignor under the Lease; and
- (d) Agrees that Assignee may further assign the Lease to a party that agrees to assume the tenant's obligations under the Lease and is reasonably acceptable to Lessor. Upon such assignment, Assignee will have no further liability or obligation under the Lease as assignee, tenant, or otherwise.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, if Beggars Pizza Franchise, LLC, as the Assignee, takes possession of the premises and confirms to the Lessor the assumption of the lease, the Lessor will recognize the Assignee as the tenant. This recognition is conditional upon the Assignee curing any defaults of the Assignor under the lease within a 30-day period.
Furthermore, Beggars Pizza, as the Assignee, is permitted to further assign the lease to another party. However, this subsequent party must agree to assume the tenant's obligations under the lease.
Additionally, the subsequent party must be reasonably acceptable to the Lessor. Upon such assignment, Beggars Pizza will relinquish any further liability or obligation under the lease as an assignee, tenant, or in any other capacity. This clause protects the lessor by ensuring any new tenant is financially sound and responsible, while also allowing Beggars Pizza flexibility in managing its franchise locations.