Under what circumstances can Beyond Juicery Eatery exercise its option to accept assignment of the lease?
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 | B. Termination of Franchise Agreement. Upon termination or expiration without renewal of the Franchise Agreement, Franchisor shall have the option to accept the assignment of the Lease pursuant to this Assignment by giving notice to Franchisee and Landlord in accordance with the terms of Section 3.B below.
notice to Franchisee and Landlord in accordance with the terms of Section 3.A below.
C. Franchisee Right to Assign. Upon an assignment of the Lease from Franchisee to Franchisor, which assignment may occur at any time without the consent of Landlord and without the payment of any fees to Landlord.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the brand has the option to accept the assignment of the lease under specific conditions. These conditions include if the franchisee fails to address any defaults under the lease, if the lease is terminated, if the franchisee's right to possession is terminated, if the landlord re-enters the premises and retakes possession, or if the lease expires without renewal. In any of these scenarios, Beyond Juicery Eatery can exercise its option to take over the lease by providing notice to both the franchisee and the landlord.
Additionally, Beyond Juicery Eatery can exercise its option to accept the lease assignment upon the termination or expiration of the Franchise Agreement without renewal. To do so, Beyond Juicery Eatery must provide written notice to both the franchisee and the landlord. The effective date of the assignment will be as specified by Beyond Juicery Eatery in the written notice to the landlord.
Furthermore, the document states that an assignment of the lease from the franchisee to Beyond Juicery Eatery can occur at any time. This assignment can be made without requiring the landlord's consent and without any fees payable to the landlord. This provision offers Beyond Juicery Eatery flexibility in managing the lease and potentially transferring it to another franchisee in the future.