Who are considered permitted assignees under the Burneys Sweets More Franchise Agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
st. This Rider is binding and shall inure to the benefit of Landlord, Tenant, and Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee, their assigns, and successors-in-interest. Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee are intended beneficiaries of this Rider, provided Franchisor shall have no liability for any of Tenant's obligations under the Form Lease. Franchisor signs below for the limited purpose of acknowledging and agreeing to the provisions of this Rider.
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- Non-disturbance from Mortgage Lenders. It is a condition of the Form Lease being subordinated to any mortgage, deed of trust, deed to secure debt or similar encumbrance on the Premises that the holder of such encumbrance agrees not to disturb Tenant's rights under the Form Lease or Tenant's possession of the Premises, so long as Tenant is not in default of its obligations under the Form Lease beyond any applicable grace or cure period provided therein.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, several entities can be considered permitted assignees under certain circumstances, particularly concerning the lease agreement. Specifically, the rider to the lease agreement is binding and benefits the landlord, tenant, Burneys Sweets More (the Franchisor), any parent, subsidiary, or affiliated company of Burneys Sweets More, or another Burneys Sweets More franchisee, including their assigns and successors-in-interest. This broad definition allows for flexibility in the event of business restructuring or transfer of the franchise.
This means that in situations involving the assignment or subletting of the premises, the landlord's consent is not required if it's part of a merger, reorganization, or sale of substantially all of the tenant's assets or business. It also applies to assignments or sublets to Burneys Sweets More, any parent, subsidiary, or affiliate of the tenant, or an affiliate of Burneys Sweets More, or another Burneys Sweets More franchisee. This clause streamlines the process for these specific scenarios, potentially saving time and legal costs for the franchisee.
However, it's important to note that while these entities are considered permitted assignees, Burneys Sweets More has no liability for any of the tenant's obligations under the form lease. This distinction clarifies that while Burneys Sweets More and its related entities can be assignees, they are not responsible for the franchisee's financial responsibilities related to the lease. This could be a crucial point for a prospective franchisee to understand, as it defines the limits of the franchisor's involvement in lease-related matters.