What happens if a Chocolate Bash franchisee loses possession of the location?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ddress:
Attachment 4 to Franchise Agreement
RIDER TO LEASE AGREEMENT
| Landlord: | Franchisor: Chocolate Bash Franchising, LLC |
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| Notice Address: | Notice Address: 5820 Casson Drive, Yorba Linda CA 92886 Telephone: 714-582-9166 |
| Telephone: | |
| Tenant: | |
| Leased Premises: |
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- Use. Tenant is a franchisee of Franchisor. The Leased Premises shall be used only for the operation of a Chocolate Bash business (or any name authorized by Franchisor).
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- Notice of Default and Opportunity to Cure. Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within 10 days after the expiration of the period in which Tenant may cure the Default.
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- Termination of Lease. Landlord shall copy Franchisor on any notice of termination of the Lease. If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease. To exercise this option, Franchisor must notify 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.
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- Authorization. Tenant authorizes Landlord and Franchisor to communicate directly with each other about Tenant and Tenant's business.
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- Right to Enter. Upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Franchisor or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
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- No Liability.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, several provisions address the loss of location. If a Chocolate Bash franchisee leases their location, the franchisor is to be copied on any default notices and lease termination notices. Chocolate Bash has the option to cure any default the franchisee fails to address within 10 days of the cure period's expiration. If the lease is terminated, Chocolate Bash has the option to enter into a new lease with the landlord under the same terms, provided they notify the landlord within 15 days of receiving the termination notice.
Furthermore, if the Franchise Agreement is terminated, the franchisee must assign the lease to Chocolate Bash upon the franchisor's written request, a condition to which the landlord consents. Chocolate Bash also has the right to assign or sublease the location to another franchisee. Any lease provisions limiting the franchisee's ability to operate other Chocolate Bash outlets nearby do not apply to Chocolate Bash itself.
Upon the expiration or termination of the Franchise Agreement or the lease, or the termination of the franchisee's right to possess the premises, Chocolate Bash or its designee can enter the location after providing reasonable notice to the landlord to remove signs and materials bearing Chocolate Bash's brand name and trademarks. Chocolate Bash is liable for any damage caused during this removal. However, by executing the lease rider, Chocolate Bash does not assume any liability regarding the lease premises or any obligation as the tenant under the lease.