Who benefits from the Lease Agreement Rider for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement – Exhibit 4 Lease Agreement Rider
C3 Wellness
LEASE AGREEMENT RIDER
(for the benefit of Aryes Franchising LLC and its assigns)
Franchisor will have the option, but not the obligation, to assume or renew the Lease and the occupancy of the Leased Premises, including the right to sublease to another Franchisee of the C3 Wellness Franchise System, for all or any part of the remaining term of the Lease and, in connection with said assumption, Franchisor will not be obligated to pay to Landlord more than two months past due rent, real estate taxes and common area maintenance charges. In the event Franchisor assumes Tenant's leasehold interest in the Lease pursuant to the terms of this Agreement and subsequently assigns the Lease and its leasehold interest to an C3 Wellness franchisee approved by Landlord, Franchisor shall not be responsible for any obligations, debts, liabilities or payments arising and/or accruing under the Lease after the effective date of such assignment. Landlord agrees that any assignment of the Lease and Tenant's leasehold interests in the Lease by Tenant to Franchisor and/or assumption by Franchisor of the Lease and such leasehold interests shall not require Landlord consent and shall not require any payment of any assignment fee or similar charge or result in any increase in rent or other fees as a result of such assignment and/or assumption.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the Lease Agreement Rider is designed to benefit Aryes Franchising LLC and its assigns. This rider is attached to the Franchise Agreement as Exhibit 4.
The Lease Agreement Rider grants C3 Wellness Spa the option, but not the obligation, to assume or renew the lease and occupancy of the leased premises. This includes the right to sublease to another franchisee within the C3 Wellness Spa system. In the event that C3 Wellness Spa assumes the lease, it will not be obligated to pay the landlord more than two months of past due rent, real estate taxes, and common area maintenance charges.
Furthermore, the landlord agrees that the assignment of the lease to C3 Wellness Spa, or the assumption of the lease by C3 Wellness Spa, does not require their consent and will not result in any assignment fees or increased rent or other fees. This arrangement provides C3 Wellness Spa with flexibility and control over the leased premises, potentially mitigating risks associated with franchisee turnover or business challenges. It also ensures that the franchisor can maintain the location within the franchise system without incurring additional costs or requiring landlord approval.