What does the Lease Agreement Rider do to the existing lease agreement for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
"Lease Agreement Rider" refers to and means the form "Lease Agreement Rider" attached to this Agreement as Exhibit 4.
Franchise Agreement – Exhibit 4 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 a document attached to the Franchise Agreement as Exhibit 4. The purpose of this rider is to benefit Aryes Franchising LLC (the franchisor) and its assigns.
Essentially, the Lease Agreement Rider ensures that C3 Wellness Spa has certain rights related to the lease of the premises where a franchise is located. This can include the option for the franchisor to assume or renew the lease under specific conditions, such as the franchisee defaulting or the termination of the Franchise Agreement. The rider also addresses the franchisor's ability to sublease the premises to another franchisee within the C3 Wellness Spa system.
Furthermore, the Lease Agreement Rider stipulates that if C3 Wellness Spa assumes the lease and subsequently assigns it to an approved franchisee, the franchisor will not be responsible for any obligations arising after the assignment date. The rider also states that the landlord's consent is not required for the assignment or assumption of the lease by the franchisor, and that no assignment fees or rent increases should occur as a result.