What is the assignment fee payable by the lessee to Bimbo Foods Bakeries Distribution for assigning the lease?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
of this paragraph shall survive termination of this Lease.
- 12. Assignment. This Lease may be assigned with Lessor's prior written consent. An assignment fee of $250.00 shall be payable by Lessee. Without Lessor's prior written consent, Lessee shall not assign, transfer, pledge, hypothecate or otherwise dispose of this Lease, the Equipment or any interest therein, or sublet or lend Equipment or permit it to be used by an
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, a lessee who wishes to assign their lease is required to pay an assignment fee. The assignment of the lease is contingent upon obtaining the Lessor's prior written consent. The assignment fee is set at $250.00.
This means that if a Bimbo Foods Bakeries Distribution franchisee wants to transfer their lease to another party, they must first get approval from the Lessor. Upon approval, the franchisee will need to pay a fee of $250.00 to complete the assignment.
It is important to note that without the Lessor's prior written consent, the franchisee is prohibited from assigning, transferring, pledging, hypothecating, or otherwise disposing of the lease, the equipment, or any interest therein. Subletting or lending the equipment, or allowing it to be used by anyone other than the franchisee or their authorized agents or employees, is also forbidden without the Lessor's consent. This provision ensures that Bimbo Foods Bakeries Distribution maintains control over who is using the leased equipment and under what terms.