Under what circumstances can the Chocolate Bash franchisor enter the leased premises?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
e 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. By executing this Rider, Franchisor does not assume any liability with respect to the Lease Premises or any obligation as Tenant under the Lease.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Chocolate Bash has the right to enter the leased premises under specific circumstances related to the termination or expiration of the franchise agreement or lease. Specifically, Chocolate Bash can enter the premises to remove signs and materials bearing its brand name, trademarks, and commercial symbols.
This right is triggered upon the expiration or termination of either the Franchise Agreement or the Lease, or upon the termination of the franchisee's right to possess the leased premises. However, Chocolate Bash must provide reasonable prior notice to the landlord before entering the premises for this purpose.
It's important to note that while Chocolate Bash has the right to enter and remove its branding, it is liable to the landlord for any damages caused during the removal process. This clarifies that Chocolate Bash's responsibility is limited to the physical act of removing its branding and does not extend to assuming broader liabilities related to the lease or the premises themselves.
Additionally, if the franchisee fails to de-identify the location within 30 days after the agreement expires or is terminated, Chocolate Bash has the right to enter the location to remove the marks and de-identify the location. In this event, Chocolate Bash will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Chocolate Bash.