What liability does Beggars Pizza Franchise, LLC have under this Conditional Assignment of Lease?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Assignment is for collateral purposes only and except as specified herein, Assignee will have no liability or obligation of any kind whatsoever arising from or in connection with this Assignment or the Lease unless Assignee takes possession of the premises demised by the Lease pursuant to the terms hereof and assumes the obligations of Assignor thereunder.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza Franchise, LLC, as the Assignee in a Conditional Assignment of Lease, generally has no liability or obligation arising from the assignment or the lease itself. This is unless Beggars Pizza takes possession of the premises and assumes the obligations of the Assignor (the franchisee) under the lease. The assignment serves as collateral, meaning it's a security measure for Beggars Pizza.
If the franchisee defaults under the lease or the Beggars Pizza Franchise Agreement, or any document securing the Franchise Agreement, Beggars Pizza has the right to take possession of the premises and expel the franchisee. In this event, the franchisee loses all rights to the lease. The franchisee cannot surrender, terminate, amend, or modify the lease without Beggars Pizza's written consent.
The lessor (the landlord) agrees to notify Beggars Pizza of any franchisee defaults and gives Beggars Pizza the right, but not the obligation, to cure these defaults within 30 days of notification. If Beggars Pizza takes possession and confirms the assumption of the lease, the lessor will recognize Beggars Pizza as the tenant, provided Beggars Pizza cures any outstanding defaults. Beggars Pizza can further assign the lease to another party acceptable to the lessor, after which Beggars Pizza will have no further liability under the lease.