Can a Chocolate Bash franchisee assign or sublet the lease to the franchisor?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Landlord within 15 days after Franchisor receives notice of the termination of the Lease.
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- Termination of Franchise Agreement. If the Franchise Agreement between Franchisor and Tenant is terminated during the term of the Lease, then upon the written request of Franchisor, Tenant shall assign the Lease to Franchisor. Landlord hereby consents to the assignment of the Lease to Franchisor.
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- Assignment and Subletting. Notwithstanding any provision of the Lease to the contrary, Tenant shall have the right to assign or sublet the Lease to Franchisor, provided that no such assignment or sublease shall relieve Tenant or any guarantor of liability under the Lease. If Franchisor becomes the lessee of the Lease Premises, then Franchisor shall have the right to assign or sublease its lease to a franchisee of the Chocolate Bash brand. Any provision of the Lease which limits Tenant's right to own or operate other Chocolate Bash outlets in proximity to the Leased Premises shall not apply to Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, a franchisee has the right to assign or sublet their lease to Chocolate Bash. However, this assignment or sublease does not relieve the franchisee or any guarantor of their liability under the lease.
If Chocolate Bash becomes the lessee of the premises, they have the right to assign or sublease the lease to another Chocolate Bash franchisee. Additionally, any provision in the lease that limits the franchisee's right to own or operate other Chocolate Bash outlets near the leased premises does not apply to Chocolate Bash itself.
In the event that the Franchise Agreement between Chocolate Bash and the franchisee is terminated during the term of the lease, the franchisee is required to assign the lease to Chocolate Bash upon written request from Chocolate Bash. The landlord consents to this assignment.