What is the purpose of the assignment of the lease to Big Frog Custom T Shirts More?
Big_Frog_Custom_T_Shirts_More Franchise · 2024 FDDAnswer from 2024 FDD Document
| FOR VALUE RECEIVED, the undersigned interest as tenant in, to and under that certain lease, a copy of which shall be attached hereto (the "Lease") respecting premises commonly known as Assignment is for collateral purposes only and except as specified herein, Assignee shall have no liability or obligation of any kind whatsoever arising from or in connection with this Assignment or the Lease unless Assignee takes possession of the premises demised by the Lease pursuant to the terms hereof and assumes the obligations of Assignor thereunder. | ("Assignor") hereby assigns and transfers to Big Frog Custom T-Shirts, Inc., a Florida corporation, with a notice address of 533 Main Street, Dunedin, Florida 34698 ("Assignee"), all of Assignor's right, title and This |
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| transferred, and is not obligated to assign or transfer, any of Assignor's interest in the Lease or the premises | Assignor represents and warrants to Assignee that Assignor has full power and authority to so |
| demised thereby. | assign the Lease and Assignor's interest therein and that Assignor has not previously assigned or |
| between Assignee and Assignor (the "Franchise Agreement"), or in the event of a default by Assignor under any document or instrument securing the Franchise Agreement, Assignee shall have the right and is hereby such event, Assignor shall have no further right, title or interest in the Lease. | Upon a default by Assignor under the Lease or under the franchise agreement for a Big Frog outlet empowered to take possession of the premises demised by the Lease, expel Assignor therefrom, and, in |
| modification of the Lease without the prior written consent of Assignee. Franchise Agreement and any renewals thereto, Assignor agrees that it shall elect and exercise all options to extend the term of or renew the Lease not less than thirty (30) days prior to the last day that the option must be exercised, unless Assignee otherwise agrees in writing. writing, and upon failure of Assignor to so elect to extend or renew the Lease as aforesaid, Assignor hereby the name, place and stead of Assignor for the purpose of effecting such extension or renewal. | Assignor agrees that it will not suffer or permit any surrender, termination, amendment or Throughout the term of the If Assignee does not otherwise agree in appoints Assignee as its true and lawful attorney-in-fact to exercise such extension or renewal options in ASSIGNOR: |
| DATED: | By: |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2024 FDD)
According to Big Frog Custom T Shirts More's 2024 Franchise Disclosure Document, the assignment of lease from the franchisee (Assignor) to Big Frog Custom T-Shirts, Inc. (Assignee) is for collateral purposes. This means Big Frog Custom T Shirts More, as the assignee, is taking an interest in the lease as security. Big Frog Custom T Shirts More has no liability or obligation related to the lease unless they take possession of the property and assume the franchisee's obligations.
If the franchisee defaults under the lease or the Franchise Agreement, Big Frog Custom T Shirts More has the right to take possession of the premises. They can then expel the franchisee and have no further obligations under the lease. The franchisee (Assignor) warrants they have the authority to assign the lease and have not previously done so.
The franchisee must not alter the lease without Big Frog Custom T Shirts More's written consent. The franchisee also agrees to exercise any lease renewal options at least 30 days before the deadline, unless Big Frog Custom T Shirts More agrees otherwise in writing. If the franchisee fails to renew, Big Frog Custom T Shirts More is appointed as the attorney-in-fact to handle the renewal.