What is the purpose of the Lease Agreement Rider 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
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 a document attached to the Franchise Agreement as Exhibit 4. The rider is for the benefit of Aryes Franchising LLC and its assigns.
The Lease Agreement Rider allows the Franchisor to assume or renew the lease and occupancy of the premises. This includes the right to sublease to another C3 Wellness Spa franchisee for any part of the remaining lease term. If the Franchisor assumes the lease, they are only obligated to pay up to 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 the Franchisor or the assumption of the lease by the Franchisor does not require their consent. It also does not require any payment of assignment fees or result in increased rent or other fees. This provision protects the Franchisor and any subsequent C3 Wellness Spa franchisee by ensuring a smooth transition in case of franchisee default or lease transfer, without incurring additional costs or needing landlord approval.