What is the dependency between the Franchise Agreement and the Conditional Assignment of Lease for a Beyond Juicery Eatery franchise?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS CONDITIONAL ASSIGNMENT OF LEASE ("Assignment") is made and entered |
|---|
| into as of, 20, by and between Beyond Juicery + Eatery Franchising, LLC, a |
| Michigan limited liability company |
| ("Franchisor"), located at 876 Horace Brown Drive, Suite 100, |
| Madison Heights, MI 48071, |
| and, a |
| located at |
| ("Franchisee"). |
| WHEREAS, Franchisor |
| and Franchisee have executed a Franchise Agreement on |
| , 20 |
| ("Franchise Agreement") for the establishment of a Beyond Juicery + Eatery |
| Restaurant |
| to be operated pursuant to the Beyond Juicery + Eatery's |
| Trademarks and System as those |
| terms are |
| defined in the Franchise Agreement; |
| WHEREAS, the Franchise Agreement requires the execution of this Conditional Assignment |
| of Lease if the real estate for the establishment of the Beyond Juicery + Eatery |
| Restaurant |
| is leased by |
| the Franchisee; |
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery Franchise Disclosure Document, the Franchise Agreement necessitates the execution of a Conditional Assignment of Lease under specific circumstances. If a franchisee leases the real estate for their Beyond Juicery Eatery restaurant, they are required to enter into this Conditional Assignment of Lease.
The Conditional Assignment of Lease outlines the terms under which Beyond Juicery Eatery, as the franchisor, can assume the franchisee's lease. This assignment is conditional because it only comes into effect if certain events occur, such as the termination or expiration of the Franchise Agreement, and if Beyond Juicery Eatery chooses to exercise its option to accept the assignment.
This arrangement provides Beyond Juicery Eatery with a mechanism to maintain control over the location of a franchise, even if the franchisee defaults or the agreement ends. For a prospective franchisee, this means understanding that the franchisor has the right to step in and take over the lease under certain conditions, which could impact their business operations and investment in the event of a dispute or termination.