In the event of conflicting provisions between the assignment and the lease, which document governs for Chem Dry?

According to Chem Dry's 2024 Franchise Disclosure Document, the Assignment governs and controls over any conflicting provisions in the Lease. This means that if there are discrepancies or contradictions between the terms outlined in the lease agreement for the premises and the assignment agreement, the terms of the assignment agreement will take precedence.

For a prospective Chem Dry franchisee, this is significant because the Collateral Assignment and Assumption of Lease outlines the conditions under which Chem Dry, Inc. can assume the lease of the franchisee's business location. This clause ensures that Chem Dry has the ultimate say in matters concerning the lease, especially in situations where the franchisee may default or breach the franchise agreement.

This condition is designed to protect Chem Dry's interests and ensure consistency in operations across all franchise locations. However, it also places a greater responsibility on the franchisee to understand and comply with both the lease agreement and the assignment agreement, as any misstep could potentially lead to Chem Dry exercising its rights under the assignment. Franchisees should seek legal counsel to fully understand the implications of this clause.