Under what condition can the Assignee further assign the lease for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, the Assignee, which is Beggars Pizza Franchise, LLC, can further assign the lease under specific conditions outlined in the Consent and Agreement of Lessor. The Lessor must find the new party reasonably acceptable and the new party must agree to assume the tenant's obligations under the lease.
Upon this further assignment, Beggars Pizza Franchise, LLC, as the Assignee, will relinquish any further liability or obligation related to the lease. This condition protects Beggars Pizza Franchise, LLC from long-term obligations tied to the lease once they have transferred it to another suitable tenant.
This arrangement provides flexibility for Beggars Pizza and the Lessor, ensuring that the lease can be transferred to a responsible party while releasing Beggars Pizza Franchise, LLC from ongoing responsibilities, provided the Lessor approves of the new tenant. This is a fairly standard clause in franchise agreements where the franchisor might temporarily hold a lease as collateral or during a transition.