What are the 'Leased Premises' referred to in the Lease Agreement Rider for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Assignor represents that Assignor possesses full power and authority to enter into this Assignment and that at no time prior to executing this Assignment has Assignor assigned and/or transferred Assignor's interests and/or rights in or to the Lease and/or the Leased Premises.
Assignee has the right and possesses full power and authority to take possession of the Leased Premises, to eject and expel Assignor from possession and occupancy of the Leased Premises and to terminate Assignor's right, title and interest in and to the Lease in the event of: (a) a default by Assignor under the terms of the Lease and Assignor's failure to timely cure such default, assuming that such default is capable of curing; (b) a default by Assignor (in Assignor's capacity as an C3 Wellness franchisee) under the terms and conditions of the C3 Wellness Franchise Agreement between Assignor, as franchisee, and Assignee, as franchisor (the "Franchise Agreement"), and Assignor's failure to timely cure such default, assuming that such default is capable of curing; (c) upon default of any agreement supporting or guaranteeing the Franchise Agreement; or (d) the expiration or termination of the Franchise Agreement.
Assignor agrees that Assignor will not and shall not permit, grant or suffer any termination, surrender or modification of the Lease without the prior written consent of Assignee. Throughout the term of the
Franchise Agreement, Assignor shall elect and exercise all options to extend the terms of or renew the Lease not less than 120 days prior to the last day that the option must be exercised unless Assignee otherwise agrees in writing. Should Assignor fail to comply with the foregoing, Assignor does hereby appoint Assignee (subject to Assignees acceptance and invocation of such right) to act on behalf of Assignor for the purpose of effectuating extensions and renewals of the Lease.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the 'Leased Premises' refers to the physical location that the franchisee will lease in order to operate their C3 Wellness Spa franchise. This is clarified within the context of the 'Collateral Assignment of Lease' and the 'Lease Agreement Rider,' which are exhibits attached to the franchise agreement.
The FDD excerpts discuss the rights and responsibilities of both the franchisee (Assignor) and franchisor (Assignee) with respect to the lease. The franchisor has the right to take possession of the leased premises and terminate the franchisee's rights to the lease under certain conditions, such as a default on the lease or franchise agreement. The franchisee cannot alter the lease without the franchisor's written consent and must exercise options to extend or renew the lease well in advance.
Furthermore, C3 Wellness Spa has the option to assume or renew the lease, including subleasing the premises to another franchisee. If C3 Wellness Spa assumes the lease, the landlord cannot require consent, charge assignment fees, or increase rent. This provides C3 Wellness Spa with flexibility and control over the location of its franchises, and protects the franchisee by ensuring the franchisor can maintain control of the premises under various circumstances.