Under the Chem Dry Collateral Assignment and Assumption of Lease, what is the Franchisee required to deliver to the Franchisor?

According to Chem Dry's 2024 Franchise Disclosure Document, the franchisee is required to deliver the Collateral Assignment and Assumption of Lease to the franchisor as a condition of being granted a franchise. This document outlines the terms under which the franchisor can assume the franchisee's lease in the event of a default.

Specifically, the franchisee grants the franchisor a security interest in the lease, furniture, fixtures, inventory, equipment, supplies, and the franchise itself. This assignment is conditional, securing the franchisee's obligations to both the lessor (landlord) and the franchisor. If the franchisee breaches the lease or the franchisor makes a payment to the lessor due to the franchisee's breach, it can be considered an immediate default under the Franchise Agreement, at the franchisor's discretion.

The franchisee also agrees not to allow the lease to become subordinate to any other lien without the franchisor's written consent, with specific exceptions for liens created by the Assignment, the Franchise Agreement, the Lessor's lien, and liens securing bank financing. Furthermore, the franchisee cannot terminate, modify, or amend the lease without the franchisor's prior written consent, and any attempt to do so is considered void.

In the event of a default by the franchisee under the lease or the Franchise Agreement, Chem Dry has the right to take possession of the site, including all furniture, fixtures, inventory, books, records, papers, and accounts. Chem Dry also has the power of attorney to manage and operate the site, including the right to rent or lease it to another party. This power of attorney is irrevocable without the franchisor's written consent.