Can a Better Blend tenant assign or sublet the lease to the Better Blend franchisor or its affiliate?
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, a tenant, who is a Better Blend franchisee, has the right to assign or sublet their lease to Better Blend or its affiliate. However, this assignment or sublease does not relieve the tenant or any guarantor of their liability under the lease, unless the landlord agrees otherwise.
If Better Blend or its affiliate becomes the lessee of the premises, Better Blend has the right to assign or sublease the lease to another Better Blend franchisee. Any provision in the lease that limits the tenant's right to own or operate other Better Blend outlets in proximity to the leased premises does not apply to Better Blend or its affiliates.
This clause provides Better Blend with flexibility in managing its real estate portfolio and ensures business continuity if a franchisee exits the system. It also protects Better Blend's ability to expand its brand presence without being restricted by location clauses that might have applied to the original franchisee. For a prospective franchisee, this means that Better Blend could potentially take over their lease and transfer it to another franchisee, or that Better Blend itself could operate additional locations nearby without violating any location restrictions.