What is the purpose of the lease assignment agreement required by Central Bark Doggy Day Care?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor must approve the lease for the Franchise Location prior to the execution of the lease by Franchisee. The lease for the Franchise Location must contain certain provisions that Franchisor requires, including, without limitation, collateral assignment of the lease, pursuant to the form of lease assignment agreement we require. The lease assignment agreement is intended to provide Franchisor certain protections under Franchisee's lease, and may not benefit Franchisee or the landlord. It is Franchisee's sole responsibility to obtain a fully-executed lease assignment agreement in connection with the execution of the lease. If Franchisee or the landlord request that Franchisor consider any modifications to the lease assignment agreement, and Franchisor elects to do so, Franchisor may also require Franchisee to reimburse Franchisor all expenses Franchisor incurs (including attorneys' fees) in connection with such review. Franchisor may also reject any request for modifications to the lease assignment
agreement for any reason. Franchisee agrees that Franchisee will not execute a lease which Franchisor has disapproved. Franchisee acknowledges that Franchisor's approval of the lease for the Franchise Location does not constitute a guarantee or warranty by Franchisor, express or implied, of the successful operation or profitability of the Franchised Business. Such approval indicates only that Franchisor believes that the Franchise Location and the terms of the lease fall within the acceptable criteria established by Franchisor as of the time period encompassing the evaluation. Franchisee shall deliver a copy of the signed lease to Franchisor within fifteen (15) days after its execution and shall duly and timely perform all of the terms, conditions, covenants and obligations imposed upon Franchisee under the lease.
Source: Item 23 — Receipts (FDD pages 53–106)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, the lease assignment agreement is intended to provide the franchisor with certain protections under the franchisee's lease. This agreement is a required provision in the lease for the franchise location, and Central Bark Doggy Day Care must approve the lease before the franchisee executes it.
It is important to note that the lease assignment agreement may not benefit the franchisee or the landlord. The franchisee bears the sole responsibility for obtaining a fully-executed lease assignment agreement in connection with the execution of the lease. If the franchisee or landlord requests modifications to the lease assignment agreement, Central Bark Doggy Day Care may elect to consider them but can also reject such requests for any reason. Furthermore, if Central Bark Doggy Day Care agrees to review any modifications, they may require the franchisee to reimburse them for all expenses incurred, including attorney's fees.
Central Bark Doggy Day Care's approval of the lease does not constitute a guarantee or warranty of the successful operation or profitability of the franchised business. It only indicates that Central Bark Doggy Day Care believes that the location and lease terms fall within their acceptable criteria at the time of evaluation. The franchisee must deliver a copy of the signed lease to Central Bark Doggy Day Care within 15 days after its execution and must comply with all terms, conditions, covenants, and obligations outlined in the lease.