What is the 'Lease Agreement' for the Casa De Corazon center defined as?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | of the terms of this Lease Rider conflict with any of the terms of the Lease, the provisions of this | | | | | |
| | | Lease Rider shall prevail. | | | | | | | | | |
(1) Certain Rights of Franchisor -
(a) Landlord acknowledges that Tenant is a franchisee of Casa Franchising, LLC ("Franchisor"), and that the Casa de Corazon® early childhood learning center to be located at the Premises is to be operated under the "Casa de Corazon" franchise system, pursuant to a franchise agreement ("Franchise Agreement") between Tenant and Franchisor.
(b) Tenant and Landlord acknowledge that the Premises will be operated only as a Casa de Corazon® early childhood learning center, and that:
- (1) Upon expiration without renewal or termination of the Franchise Agreement for any reason whatsoever, the Landlord will grant Franchisor an option, for thirty (30) days thereafter, to replace Franchisee as lessee and at any time thereafter to assign its interest to Franchisor, an affiliate or another franchisee of Franchisor who would then become the lessee with the approval of lessor, which approval may not be unreasonably withheld;
- (2) Landlord agrees to furnish to Franchisor copies of any and all correspondence and notices sent to Tenant pertaining to the Lease and the Premises at the same time that such correspondence and notices are sent to Tenant. To that end, Landlord shall furnish to Franchisor, contemporaneously with that to Franchisee, written notice of any default in the Lease and the action required to cure such default. In the event of a monetary default, Landlord shall allow Franchisor thirty (30) days after receipt of such notice to escrow the funds necessary to cure such default if Franchisee fails to do so. In the event of a non-monetary default, Landlord shall allow Franchisor thirty (30) days after Franchisor's receipt of such written notice to provide Landlord with a letter of undertaking to cure such default if Franchisee fails to do so. If Franchisee fails to cure either type of default, and Franchisor has escrowed the required funds, or provided the necessary undertaking, as the case may be, Landlord shall take any action necessary to remove Franchisee from the Premises and retake possession of the Premises. Landlord shall then allow Franchisor to cure the default and take possession of the Premises as lessee under the same Lease, and at any time thereafter to assign Franchisor's interest in such Lease to another franchisee of Franchisor;
(3) Landlord shall accept Franchisor, it affiliate, or Franchisor's franchisee as a substitute under the existing terms of the Lease upon notice from Franchisor that it is exercising its option to replace Franchisee as lessee; and
(4) Landlord acknowledges that, in all cases, Franchisee is solely responsible for all obligations, payments and liabilities accruing under the Lease unless and until Franchisor exercises its option to become substitute lessee and actually takes possession of the Premises.
(2) Rights of Franchisor to Purchase Premises As set forth in the Franchise Agreement, the Franchisor has the right under certain circumstances to acquire any or all of the assets relating to or used in the Franchised Business, including the site of the Franchised Center and any improvements to such real property.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
Based on the 2025 Casa De Corazon Franchise Disclosure Document, the 'Lease Agreement' refers to the agreement between the tenant (franchisee) and the landlord for the premises where the Casa De Corazon early childhood learning center will be located.
The landlord acknowledges that the tenant is a franchisee of Casa Franchising, LLC, and the premises will operate under the "Casa de Corazon" franchise system. This agreement ensures that the landlord is aware of the franchise relationship and the specific use of the property.
Upon expiration or termination of the Franchise Agreement, Casa De Corazon has an option to replace the franchisee as the lessee. The landlord must also provide Casa De Corazon with copies of all correspondence and notices related to the lease, ensuring the franchisor is informed of any defaults and has the opportunity to cure them. This arrangement protects Casa De Corazon's interests by allowing them to maintain control over the location and continue operating the center, if necessary, with another franchisee.
Casa De Corazon also has the right to enter the premises to make necessary modifications or cure any defaults under the Franchise Agreement or the lease. This provision ensures that Casa De Corazon can protect its brand and system standards, even if the franchisee is unable or unwilling to do so. However, the landlord is not responsible for any expenses or damages arising from such actions by Casa De Corazon.