If Better Blend becomes the lessee, can it assign or sublease the lease to another franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Assignment and Subletting. Notwithstanding any provision of the Lease to the contrary, Tenant shall have the right to assign or sublet the Lease to Franchisor or its affiliate, provided that no such assignment or sublease shall relieve Tenant or any guarantor of liability under the Lease unless otherwise agreed by Landlord. If Franchisor or its affiliate becomes the lessee of the Leased Premises, then Franchisor shall have the right to assign or sublease its lease to a franchisee of the Better Blend brand. Any provision of the Lease which limits Tenant's right to own or operate other Better Blend outlets in proximity to the Leased Premises shall not apply to Franchisor or to its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if Better Blend or its affiliate becomes the lessee of a leased premises, Better Blend has the right to assign or sublease its lease to another Better Blend franchisee. This clause overrides any conflicting provisions in the lease agreement.
This is a beneficial provision for franchisees because it provides Better Blend with flexibility in managing its real estate portfolio and supporting its franchisees. If a franchisee is struggling or wants to exit the business, Better Blend can step in, take over the lease, and then assign or sublease it to a new or existing franchisee. This can help to ensure business continuity and minimize disruptions.
However, it's important to note that the original franchisee remains liable under the lease unless the landlord agrees otherwise. Therefore, franchisees should carefully review the lease agreement and understand their obligations before signing. Franchisees should also communicate openly with Better Blend and the landlord if they are experiencing difficulties or considering exiting the business.