What is the effect of the termination of the Franchise Agreement on the Better Blend tenant's lease?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Termination of Franchise Agreement. If the Franchise Agreement between Franchisor and Tenant is terminated during the term of the Lease, then upon the written request of Franchisor, Tenant shall assign the Lease to Franchisor. Landlord hereby consents to the assignment of the Lease to Franchisor.
-
- Right to Enter. Upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Franchisor or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
-
- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if the Franchise Agreement between Better Blend and the tenant is terminated during the term of the lease, Better Blend has the option to request that the tenant assign the lease to them. The landlord consents to this assignment. This clause is part of a rider that outlines the relationship between the landlord and Better Blend.
This provision protects Better Blend by allowing them to maintain control of the location even if the franchisee's agreement is terminated. This could be due to the franchisee's default or other reasons for termination. By stepping in and taking over the lease, Better Blend can ensure the continued operation of a Better Blend business at that location, either by operating it themselves or assigning the lease to another franchisee.
Additionally, upon the expiration or termination of the Franchise Agreement or the lease, Better Blend has the right to enter the premises, after providing reasonable notice to the landlord, to remove any signs or materials bearing Better Blend's branding. Better Blend is responsible for any damages caused during the removal process. However, Better Blend clarifies that by executing this rider, they do not assume any liability regarding the leased premises or any obligations as the tenant under the lease.