Can the Developer assign the lease to Chicken Guy, and what conditions apply to this assignment?

According to Chicken Guy's 2025 Franchise Disclosure Document, the Developer may assign the lease to Chicken Guy or its designee with the landlord's consent, which cannot be unreasonably withheld. This assignment can occur without any assignment fee or increase in rentals payable to the landlord.

Additionally, the landlord agrees to consent to the Developer's collaterally assigning the lease to Chicken Guy or its designee. This grants Chicken Guy the option, but not the obligation, to assume the lease from the date Chicken Guy takes possession of the leased premises. This collateral assignment also occurs without any assignment fee or increase in rentals.

These lease provisions are crucial for a Chicken Guy franchisee as they provide flexibility in managing the real estate aspect of the business. The ability to assign the lease to Chicken Guy can be beneficial if the franchisee faces difficulties or wishes to exit the business, while Chicken Guy's option to assume the lease provides them with control over the location, ensuring business continuity and protection of their brand. The condition that the landlord's consent cannot be unreasonably withheld protects the franchisee from arbitrary denial of the assignment.