Does Chocolate Fish Coffee assume any obligation as Tenant under the Lease by executing the Rider?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Chocolate Fish Coffee does not assume any liability with respect to the leased premises or any obligation as a tenant under the lease by executing the Rider. However, Chocolate Fish Coffee or its designee may enter the leased premises to remove signs and other material bearing Chocolate Fish Coffee's brand name, trademarks, and commercial symbols upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of the tenant's right of possession of the leased premises, after giving reasonable prior notice to the Landlord.
If Chocolate Fish Coffee or its designee causes any damage during the removal of these items, Chocolate Fish Coffee will be liable to the Landlord for the damage. This clause protects the landlord by ensuring that the premises can be restored to its original condition after the franchise agreement ends, and it clarifies Chocolate Fish Coffee's responsibilities regarding its branding and trademarks.
This arrangement is typical in franchising, where the franchisor wants to ensure brand consistency and control over its trademarks, even after a franchise agreement terminates. The franchisee should understand that while Chocolate Fish Coffee is not a party to their lease agreement, Chocolate Fish Coffee retains the right to access the property to remove its branding and is responsible for any damages caused during the removal process.