What is the purpose of 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; |
| WHEREAS, Franchisee has entered |
| into a lease |
| with ("Landlord") for |
| certain premises ("Premises") in which Franchisee will operate a |
| Beyond Juicery + Eatery Restaurant |
| pursuant to the Franchise Agreement, which lease is dated, |
| 20 |
| (the "Lease"); and |
| WHEREAS, the Premises are located in,, as more particularly |
| described on Exhibit A-1 |
| attached hereto. |
| NOW THEREFORE, it is hereby agreed as follows: |
| 1. |
| Conditional Assignment. Franchisee hereby assigns to Franchisor |
| all of Franchisee's |
| right, title, and interest in and to the Lease, including any and all rights or options of Franchisee to |
| extend |
| or |
| renew |
| the Lease |
| or purchase the Premises |
| through a right of first refusal or otherwise, such |
| assignment to become effective |
| upon the occurrence of any of the following: |
| A. |
| Termination of Lease. If (i) Franchisee fails to cure any default(s) under the |
| Lease, |
| (ii) the Lease is terminated, (iii) Franchisee's right to possession is terminated, (iv) Landlord |
| re-enters the Premises and retakes possession, or (v) the Lease expires without renewal, Franchisor |
| shall have the option to accept the assignment of the Lease |
| pursuant to this Assignment by giving |
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the Conditional Assignment of Lease is an agreement that ensures the franchisor has the option to take over the franchisee's lease under specific conditions. The agreement is required if the franchisee leases the real estate for their Beyond Juicery Eatery Restaurant. This assignment becomes effective if the franchisee defaults on the lease, the lease is terminated, the franchisee's right to possession ends, the landlord repossesses the premises, or the lease expires without renewal.
If any of these conditions occur, Beyond Juicery Eatery has the option to accept the assignment of the lease. By providing written notice to the landlord, Beyond Juicery Eatery can exercise this option. The landlord can rely solely on this written notice as acceptance of the lease assignment. The franchisee agrees to execute any documents requested by Beyond Juicery Eatery to facilitate this process and even appoints Beyond Juicery Eatery as their attorney-in-fact to execute necessary documents.
This arrangement provides Beyond Juicery Eatery with a safety net, allowing them to maintain control over the location of a restaurant even if a franchisee fails. It also allows Beyond Juicery Eatery to transfer or assign the Lease to another Beyond Juicery + Eatery franchisee without the need to seek consent from the Landlord. This can be crucial for business continuity and brand consistency. However, Beyond Juicery Eatery is not liable to the landlord for anything that arose prior to the effective date of the assignment to Beyond Juicery Eatery. If Beyond Juicery Eatery assigns the lease to another franchisee, Beyond Juicery Eatery is released from any further liability under the lease.