Under what conditions can a Buona franchisee assign their lease to the franchisor or its affiliates?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignment. Lessee shall have the right to assign all of its right, title and interest in the Lease to Franchisor or its parent, subsidiary, affiliate, or another franchisee, at any time during the term of the Lease, including any extensions or renewals thereof, without first obtaining Lessor's consent in accordance with the Collateral Assignment of Lease attached hereto as Attachment A (the "Collateral Assignment"). However, no assignment shall be effective until the time as Franchisor or its designated affiliate gives Lessor written notice of its acceptance of the assignment, and nothing contained herein or in any other document shall constitute Franchisor or its designated transferee a party to the Lease, or guarantor thereof, and shall not create any liability or obligation of Franchisor
or its designated transferee unless and until the Lease is assigned to, and accepted in writing by, Franchisor or its designated transferee. In the event of any assignment, Lessee shall remain liable under the terms of the Lease. Franchisor shall have the right to reassign the Lease to another franchisee without the Lessor's consent in accordance with this Section.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee has the right to assign their lease to Buona or its parent company, subsidiary, affiliate, or another franchisee at any time during the lease term, including any extensions or renewals. This can be done without obtaining the lessor's consent, according to the Collateral Assignment of Lease.
However, such an assignment is not effective until Buona or its designated affiliate provides the lessor with written notice of acceptance of the assignment. The document clarifies that neither Buona nor its designated transferee becomes a party to the lease or a guarantor unless and until the lease is officially assigned and accepted in writing.
Even with the assignment, the original franchisee remains liable under the terms of the lease. Buona also retains the right to reassign the lease to another franchisee without needing the lessor's consent, as long as it follows the guidelines in the mentioned section.