Can a Chocolate Fish Coffee franchisee assign or sublet the lease to the franchisor?

According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, a franchisee has the right to assign or sublet their lease to the franchisor, Chocolate Fish Franchising. This is explicitly stated in the lease agreement terms outlined in Item 23. However, it's important to note that even if the franchisee assigns or sublets the lease to Chocolate Fish Franchising, the franchisee remains liable under the original lease agreement, unless otherwise agreed upon. This means the franchisee is still responsible for the lease obligations even after the assignment or sublease.

Furthermore, if Chocolate Fish Franchising becomes the lessee, they have the right to assign or sublease the lease to another Chocolate Fish Coffee franchisee. This provides Chocolate Fish Franchising with flexibility in managing the location and ensuring continued operation under the Chocolate Fish Coffee brand. Any provisions in the original lease that limit the franchisee's right to own or operate other Chocolate Fish Coffee outlets near the leased premises do not apply to Chocolate Fish Franchising should they become the lessee.

This clause protects Chocolate Fish Coffee's interests by allowing them to maintain control over the location if a franchisee defaults or the franchise agreement is terminated. It also ensures business continuity by enabling Chocolate Fish Coffee to transfer the lease to another franchisee. For a prospective franchisee, this means that while they can assign or sublet the lease to the franchisor, they should be aware of their continued liability under the lease and understand the circumstances under which Chocolate Fish Coffee might exercise its right to take over the lease.