What obligations does Brain Balance assume under the lease after providing the Assignment Notice?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- If the Assignee elects to exercise its option to accept the assignment of the Lease and replace Assignor as tenant under the Lease pursuant to the terms set forth in this Assignment, it shall provide written notice of such acceptance to the Landlord (the "Assignment Notice"). Upon
Assignee's providing the Assignment Notice, Assignee shall become the tenant of the leased Premises and shall become liable for all obligations under the Lease arising after the date of the Assignment Notice. Landlord shall recognize Assignee as the tenant of the leased Premises effective as of the date of the Assignment Notice. If the Assignee elects to exercise its option to accept the assignment of the Lease, it agrees that the obligations assumed shall benefit the Landlord named in the Lease.
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- Landlord consents to Assignor's conditional assignment of the Lease hereunder.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, if the Assignee (Brain Balance) chooses to accept the lease assignment and replace the Assignor (the franchisee) as the tenant, Brain Balance must provide written notice of acceptance to the Landlord, known as the "Assignment Notice."
Upon providing this Assignment Notice, Brain Balance becomes the tenant of the leased premises. Consequently, Brain Balance becomes responsible for all obligations under the lease that arise after the date of the Assignment Notice. The landlord will then recognize Brain Balance as the tenant, effective from the date of the Assignment Notice.
Brain Balance's acceptance of the lease assignment means it agrees that the obligations it assumes will benefit the landlord named in the lease. However, it's important to note that even with this assignment, the original franchisee (Assignor) and any guarantors remain liable under the lease, meaning they are not released from their obligations even after Brain Balance takes over the lease.