What must the Bhc Franchisor do upon taking possession of the premises after assuming the lease?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Franchisor, upon taking possession of the Premises, shall cure any default specified by Landlord within the timeframes noted herein and shall execute and deliver to Landlord its assumption of Tenant's rights and obligations under the Lease.
Franchisor shall pay, perform, and be bound by all the duties and obligations of the Lease applicable to Tenant, except that the Franchisor may elect not to assume or be bound by the terms of any Amendment to the Lease executed by Tenant without obtaining Franchisor's prior written approval, which shall not be unreasonably withheld or delayed.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc elects to assume the lease, upon taking possession of the premises, Bhc must address any defaults specified by the landlord within the timeframes provided. Bhc must also formally execute and deliver to the landlord its assumption of the tenant's rights and obligations under the lease.
Bhc is obligated to fulfill all duties and obligations outlined in the lease that apply to the tenant. However, Bhc has the option not to be bound by any amendments to the lease that the tenant executed without Bhc's prior written approval. This approval will not be unreasonably withheld or delayed.
This clause protects Bhc from being bound by lease amendments made by the franchisee without their consent, while also ensuring that Bhc fulfills the original lease terms. This provides Bhc with flexibility in managing the lease while maintaining the integrity of the original agreement. For a prospective franchisee, this highlights the importance of understanding the lease terms and any potential liabilities before entering into a franchise agreement.