Is lessor consent required for the conditional lease assignment to Buns On Fire?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee to conditionally assign such lease to the Franchisor (with the consent of the lessor, if required) by conditional lease assignment provisions in form annexed to Franchise Agreement as Exhibit "C" in order to secure performance of any and all of Franchisee's liabilities and obligations to the Franchisor; or
3. That such lease contains substantially the following provisions:
- a. "Anything contained in this lease to the contrary notwithstanding, Lessor agrees that without its consent, this lease and the right, title and interest of the Lessee hereunder may be assigned by the Lessee to SMYA Ventures LLC, an Illinois limited liability company or its designee."
- b. "Lessee hereby agrees that Lessor may, upon the written request of Buns on Fire, disclose to Buns on Fire all reports, information or data in Lessor's possession with respect to sales made in, upon, or from the leased premises."
- c. "Lessor shall give written notice to Buns on Fire (concurrently with the giving of such notice to Lessee) of any default by Lessee under the lease and Buns on Fire shall have the right, in its sole discretion, to cure any such default. Such notice shall be sent to Buns on Fire at its headquarters, or such other address as Buns on Fire may specify in writing to Lessor."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchisor has the right to require the franchisee to conditionally assign the lease to the franchisor. This conditional assignment serves to secure the franchisee's performance of their liabilities and obligations to Buns On Fire. The lease assignment may require the lessor's consent.
However, the lease may contain provisions that waive the lessor's consent for assignment to SMYA Ventures LLC (Buns On Fire). Specifically, the lease might state that the lessor agrees that the lease and the lessee's rights can be assigned to SMYA Ventures LLC without the lessor's consent. The lessor may also agree to disclose sales reports and default notices to Buns On Fire.
In the event of franchisee default, Buns On Fire has the right to receive written notice from the lessor and the option to cure the default. If the Franchise Agreement expires or is terminated, Buns On Fire has the option to have the lease transferred and assigned to them, and the franchisor can then assign or sublet the premises, provided that this clause is included in any subsequent agreement.