Who is the 'Landlord' in the context of the Collateral Assignment of Lease for Burros Fries?

According to the 2024 Burros Fries Franchise Disclosure Document, the 'Landlord' in the context of the Collateral Assignment of Lease is the entity that leases the property to the franchisee. The franchisee, in turn, assigns their rights and interest in the lease to Burros Fries Franchise, Inc. This assignment is collateral, meaning it serves as security for the franchisee's obligations under the Franchise Agreement.

This arrangement allows Burros Fries to step in and take over the lease if the franchisee defaults on their obligations. The FDD specifies that the franchisee must obtain written consent from Burros Fries before executing any lease or sublease, or making any modifications to it. This ensures that Burros Fries has control over the location and terms of the lease, protecting their interests.

Furthermore, the lease agreement must include provisions that allow the franchisee to operate a Burros Fries business, restrict the use of the site to only a Burros Fries business, and prevent the franchisee from assigning or modifying the lease without prior written consent from Burros Fries. The lease should also require the lessor to provide Burros Fries with copies of any default notices sent to the franchisee and grant Burros Fries the right to cure any default within fifteen days of the franchisee's cure period. This setup is typical in franchising, as it gives the franchisor a degree of control over the business location and protects the brand's presence.