Does the Lease Agreement Rider for C3 Wellness Spa specify any obligations for the Landlord?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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 does outline specific obligations for the landlord. The landlord agrees that if the tenant (the franchisee) assigns the lease to the franchisor (Aryes Franchising LLC) or if the franchisor assumes the lease, the landlord's consent is not required.
Furthermore, the landlord cannot charge any assignment fees or increase rent or other fees as a result of the assignment or assumption of the lease by C3 Wellness Spa. This provision is beneficial for a prospective franchisee because it streamlines the process if the franchisor needs to take over the lease, potentially avoiding additional costs or complications.
This type of clause is relatively common in franchise agreements, as it protects the franchisor's ability to maintain control over the location and ensure business continuity. Franchisees should carefully review the Lease Agreement Rider and understand the conditions under which the franchisor might assume the lease, as well as any other obligations the landlord has agreed to.