What is the 'Effective Date' referring to in the Chem Dry Collateral Assignment and Assumption of Lease?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Vice President of Legal | | & Franchise Administration | | |
Exhibit G-5
EXHIBIT H TO THE FRANCHISE AGREEMENT
COLLATERAL ASSIGNMENT AND ASSUMPTION OF LEASE
THIS COLLATERAL ASSIGNMENT AND ASSUMPTION OF LEASE made, entered into and effective on (the "Effective Date") by and between: (i) (the "Franchisor"); and (ii) (the "Franchisee"). (this "Assignment") is BACKGROUND INFORMATION The Franchisor entered into that certain Franchise Agreement (the "Franchise Agreement") dated (the "Franchised Business") located at as of with the Franchisee, pursuant to which the Franchisee plans to own and operate a franchised business (the "Site"). In addition, pursuant to that certain Lease Agreement (the "Lease"), the Franchisee has leased or will lease certain space containing the Franchised Business The Franchise Agreement requires the described therein from (the "Lessor").
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Effective Date in the Collateral Assignment and Assumption of Lease refers to the date on which the agreement is made, entered into, and becomes effective. This agreement is between Chem Dry as the Franchisor and the Franchisee. The document indicates that the Franchisee plans to own and operate a franchised business at a specific site, and they have leased or will lease the space from a Lessor under a Lease Agreement.
The Collateral Assignment and Assumption of Lease is required to be delivered to Chem Dry as a condition for granting the franchise. This assignment ensures that Chem Dry has certain rights related to the lease of the property where the Chem Dry business operates.
Furthermore, the document states that the parties execute the assignment as of the day and year first written in the agreement. This date marks when the obligations and rights outlined in the assignment become active and legally binding for both Chem Dry and the franchisee.