What is the 'Assignment Notice' and when is it used in the context of a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of (i) a default under the Lease by Assignor, (ii) a default under the Agreement by Assignor, or (iii) the expiration and termination of the Agreement for any reason whatsoever, Assignee shall have the option to accept this Assignment and replace Assignor as tenant under the Lease pursuant to the terms set forth herein by providing an Assignment Notice (as defined in Section 6) to Landlord.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, an 'Assignment Notice' is a notification provided to the landlord when Brain Balance chooses to take over a franchisee's lease. This action occurs under specific conditions outlined in the Conditional Assignment of Lease agreement.
The 'Assignment Notice' is used when one of the following events occurs: the franchisee defaults on their lease, the franchisee defaults under the Franchise Agreement, or the Franchise Agreement expires or terminates for any reason. Upon any of these events, Brain Balance has the option to replace the franchisee as the tenant under the lease by sending the Assignment Notice to the landlord.
This conditional assignment of lease is established between the franchisor (Brain Balance), the franchisee (assignor), and the landlord. The franchisee conditionally assigns their rights, title, and interest in the lease and any security deposit to Brain Balance. Until the conditions requiring an Assignment Notice are met, the franchisee retains all rights and obligations as the tenant under the lease. The landlord is obligated to provide Brain Balance with a 15-day written notice before any lease modification, amendment, or cancellation, and copies of any default notices given to the franchisee within three days of sending them to the franchisee. Brain Balance has the option to cure any default under the lease if the franchisee fails to do so, but this does not relieve the franchisee of their default status for the purposes of the assignment.