What information is provided about the Tenant in the Lease Agreement Rider for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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 addresses the tenant's obligations and rights, particularly concerning the franchisor's option to assume the lease.
Specifically, C3 Wellness Spa franchisor has the option, but not the obligation, to assume or renew the lease and occupancy of the premises. This includes the right to sublease the property to another franchisee within the C3 Wellness Spa system. If the franchisor chooses to assume the lease, they 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, if C3 Wellness Spa assumes the lease and subsequently assigns it to an approved franchisee, the franchisor will not be responsible for any obligations, debts, liabilities, or payments under the lease after the assignment's effective date. The landlord also agrees that the assignment of the lease from the tenant to the franchisor, or the assumption of the lease by the franchisor, does not require the landlord's consent, any assignment fees, or result in increased rent or other fees.