What is the 'Site' referring to in the Chem Dry Collateral Assignment and Assumption of Lease?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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"). Franchisee to deliver this Assignment to the Franchisor as a condition to the grant of a franchise. OPERATIVE TERMS
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the 'Site' in the Collateral Assignment and Assumption of Lease refers to the physical location where the franchised Chem Dry business will operate. This is clarified in the background information section of the agreement, which states that the franchisee plans to own and operate a franchised business at a specific location, referred to as the "Site".
This assignment of lease is a requirement of the Franchise Agreement, meaning the franchisee must deliver this assignment to Chem Dry as a condition of being granted the franchise. The document also states that the franchisee has leased or will lease certain space from a lessor, further solidifying that the 'Site' is the physical location of the Chem Dry business.
Chem Dry retains certain rights regarding the site. For example, in the event of default by the franchisee, Chem Dry has the option to take possession of the site. The franchisee is also restricted from making changes to the lease agreement without prior written consent from Chem Dry. This collateral assignment provides Chem Dry with a security interest in the lease and assets located at the site, protecting their interests in case of franchisee default.