Does the Beyond Juicery Eatery franchisor assume liability for a developer's debts or obligations?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord acknowledges and agrees that Franchisor's right to exercise its option to accept assignment of the Lease is not contingent upon nor is Franchisor obligated in any manner to cure any default of Franchisee under the Lease.
- B.
Franchisor shall assume all of Franchisee's rights, options, and obligations under the Lease commencing upon the effective date of the assignment and Franchisor shall have the further right to transfer or assign the Lease to another Beyond Juicery + Eatery franchisee without the need to seek consent from Landlord.
Franchisor shall not be liable to Landlord for anything that arose prior to the effective date of the assignment to Franchisor.
If Franchisor assigns the Lease to another Beyond Juicery + Eatery franchisee, Franchisor shall be released from any further liability under the Lease.
Notwithstanding any assignment of the Lease to Franchisor, Franchisor shall not be subject to any provisions of the Lease that requires continuous operation of a business in the Premises during any period that the Premises is closed for remodeling or while Franchisor is seeking to obtain and train a new franchisee, provided that rent is paid during such period of closure pursuant to the terms of the Lease.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery Franchise Disclosure Document, under specific conditions related to lease assignments, Beyond Juicery Eatery outlines its assumption of franchisee obligations. If Beyond Juicery Eatery exercises its option to accept the assignment of a lease, it assumes all of the franchisee's rights, options, and obligations under that lease, starting from the effective date of the assignment. This also gives Beyond Juicery Eatery the right to further transfer or assign the lease to another franchisee without needing the landlord's consent. However, Beyond Juicery Eatery is not liable to the landlord for anything that occurred before the assignment's effective date. Furthermore, if Beyond Juicery Eatery assigns the lease to another franchisee, Beyond Juicery Eatery is released from any further liability under the lease.
This arrangement provides clarity regarding liability and obligations when a lease is transferred. For a prospective franchisee, this means that Beyond Juicery Eatery will step into the shoes of the franchisee regarding lease obligations if the lease is assigned to them. However, the franchisee is not off the hook for liabilities that predate the assignment. This is a fairly standard practice in franchising, where the franchisor may want to maintain control over the location and lease terms to ensure brand consistency and operational standards are upheld.
It is important to note that Beyond Juicery Eatery is not subject to lease provisions requiring continuous business operation during remodeling or while seeking a new franchisee, as long as rent is paid. This clause offers Beyond Juicery Eatery some flexibility in managing the premises during transitional periods. Franchisees should be aware of these conditions, particularly regarding their initial lease agreements and potential assignment scenarios, as it directly impacts their liabilities and the franchisor's role in managing the lease.