Under what conditions does Buona have the right to take an automatic assignment of the Lessee's interest in the lease?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
esident JB3@buona.com
Franchisor may change its address for receiving notices by giving Lessor written notice of the new address. Lessor agrees that it will notify both Lessee and Franchisor of any change in Lessor's mailing address to which notices should be sent.
9. Termination or Expiration.
a) Upon Lessee's default and failure to cure the default within the applicable cure period, if any, under either the Lease or the Franchise Agreement, Franchisor will, at its option, have the right, but not the obligation, to take an automatic assignment of Lessee's interest and at any later time to re-assign the Lease to a new franchisee without Lessor's consent and to be fully released from any and all liability to Lessor upon the reassignment, provided the franchisee agrees to assume Lessee's obligations and the Lease.
b) Upon the expiration or termination of either the Lease or the Franchise Agreement, Lessor will cooperate with and assist Franchisor in securing possession of the Premises and if Franchisor does not elect to take an assignment of the Lessee's interest, Lessor will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Lessor, to remove all signs and all other items identifying the Premises as a Franchised Business and to make other modifications (such as repainting) as are reasonably necessary to protect the Franchisor's marks, system, and trade dress, a
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the option to take an automatic assignment of the franchisee's (Lessee's) interest in the lease under specific circumstances. This right arises if the franchisee defaults on either the lease agreement or the Franchise Agreement and fails to correct the default within any applicable cure period.
If such a default occurs and is not cured, Buona can choose to take over the lease. Furthermore, Buona has the right to re-assign the lease to a new franchisee without needing the Lessor's consent. Upon reassignment, Buona is released from any liability to the Lessor, provided that the new franchisee agrees to take on the original franchisee's obligations under the lease.
Additionally, the Lessor is obligated to provide Buona with written notice of any default or violation by the franchisee under the lease terms. This notice must be given within a reasonable time after the Lessor becomes aware of the default. Buona then has the right, but not the obligation, to cure the default. Buona has an additional 15 days after the franchisee's cure period expires to decide whether to cure the default and take over the lease.