Under what conditions can Brain Balance exercise its option to accept the assignment of the lease?
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 the 2025 Brain Balance Franchise Disclosure Document, Brain Balance, as the Assignee, has the option to accept the assignment of the lease under specific conditions. These conditions arise if (i) the franchisee (Assignor) defaults under the lease, (ii) the franchisee defaults under the Franchise Agreement, or (iii) the Franchise Agreement expires or terminates for any reason.
If any of these conditions are met, Brain Balance can exercise its option to replace the franchisee as the tenant under the lease. To do so, Brain Balance must provide an Assignment Notice to the landlord, as outlined in the terms of the assignment.
Upon providing the Assignment Notice, Brain Balance assumes the role of tenant and becomes liable for all obligations under the lease from the date of the notice. The landlord will then recognize Brain Balance as the tenant, effective from the date of the Assignment Notice. This arrangement ensures that the lease can continue without disruption if the franchisee fails to meet their obligations or the franchise agreement ends.