How can the Casa De Corazon agreement be modified?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
lete an updated or new Statement of Ownership and Management and Guaranty executed by all owners of Franchisee.
If individual:
FRANCHISE ASSIGNMENT, SALE AND TRANSFER TO ENTITY OWNED BY ORIGINAL FRANCHISEE
| A. Assignment and Sale |
|---|
| Pursuant |
| to |
| Section 18(c)(i) |
| of |
| the |
| Casa |
| de |
| Corazon |
| Franchise |
| Agreement |
| dated |
| , by and between the undersigned and Casa Franchising, LLC (the |
| "Agreement"), I/we hereby transfer, subject to approval by Casa Franchising, LLC (the |
| "Company"), all my/our rights, in the Agreement, effective, to the |
| transferee named below. |
| I/we understand that this transfer does not relieve me/us of my/our |
| obligations under the Agreement. To induce the Company to approve this assignment: |
| (01) |
| I/we agree to subordinate any payment due to me/us from the Transferee (as defined |
| below) to any other obligation the Transferee may have to the Company. If the Company |
| notifies me/us of our default by the Transferee of its obligations to the Company under the |
| Agreement, I/we will not accept any further amounts that may be owed to me/us by the |
| Transferee until the Company has confirmed, in writing, that such defaults have been |
| cured. |
| (02) |
| I/we release the Company and its officers, directors, and agents, from all actions |
| and claims I/we may have against them arising out of their sale to me/us of the Franchise, |
| or in connection with my/our operation of the Franchise, including, but not limited to, any |
| claims arising under the Agreement. |
| Name of New Franchisee ("Transferee") |
| Address of Transferee |
| City, State and Zip Code |
| Signature of Original Franchisee ("Transferor") |
| Date |
| ---- | ------------------------------------------ | -- | -- | -- | -- |
|---|
| herein.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
According to the 2025 Casa De Corazon Franchise Disclosure Document, the franchise agreement can be modified through a transfer or assignment, subject to approval by Casa Franchising, LLC. The original franchisee must transfer all rights in the agreement to a new franchisee, effective upon the company's approval. This transfer does not relieve the original franchisee of their obligations under the agreement.
To gain approval for the assignment, the original franchisee must agree to subordinate any payments due to them from the new franchisee to any obligations the new franchisee owes to Casa De Corazon. If the company notifies the original franchisee of a default by the new franchisee, the original franchisee cannot accept further payments from the new franchisee until the defaults are cured in writing by Casa De Corazon. Additionally, the original franchisee must release Casa De Corazon and its agents from all claims related to the sale of the franchise or its operation.
The FDD also indicates that a franchisee must notify Casa De Corazon immediately upon any change in the Statement of Ownership and Management. Casa De Corazon can request an updated or new statement and guaranty executed by all owners of the franchisee. This suggests that changes in ownership or management structure also require modifications or updates to related agreements and documentation.