Does the Chop5 Salad Kitchen franchise agreement confer rights or remedies to third parties?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
- Default Notices. Landlord agrees to provide Franchisor with copies of all written default notices sent to Tenant at the same time such notices are sent to Tenant. Landlord agrees to send such copies to Franchisor by email and registered mail as set forth below (Franchisor may change the notice email and address from time to time by sending written notice to Landlord):
Email: brianm@chop5.com
Mail: CHOP5 Franchise LLC
6011 Brownsboro Park Blvd., Suite F
Louisville, Kentucky 40207 Attention: Brian Mills, President
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- Right to Cure. If Tenant defaults under the Lease, Franchisor has the right (but not the duty) to cure such default within 15 days following the expiration of any applicable cure period. In such event, Franchisor may immediately commence occupancy of the Premises as the tenant under the Lease without obtaining Landlord's or Tenant's consent. Franchisor may thereafter assign the Lease to another CHOP5 Salad Kitchen franchisee or to an entity owned and/or controlled by Franchisor. If it does, Franchisor must first obtain Landlord's written approval of the assignee. Landlord, however, must neither unreasonably withhold nor delay its approval thereof. Landlord will acknowledge any such assignment in writing. No assignment permitted under this Section is subject to any assignment or similar fee or will cause any rental acceleration.
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- Right to Assign. At any time, including, without limitation, upon the expiration or termination of the Franchise Agreement, and without Landlord's prior consent, Tenant may assign the Lease to Franchisor. In such event, Franchisor may thereafter assign the Lease to another CHOP5 Salad Kitchen franchisee or to an entity owned and/or controlled by Franchisor. If it does, Franchisor must first obtain Landlord's written approval of the assignee. Landlord, however, must neither unreasonably withhold nor delay its approval thereof. Landlord will acknowledge any such assignment in writing. No assignment permitted under this Section is subject to any assignment or similar fee or will cause any rental acceleration.
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- Right of First Refusal. Landlord hereby grants Franchisor the first right of refusal to lease the Premises as the new tenant upon the expiration or termination of the Lease. Franchisor shall have a period of 30 days after the expiration or termination of the Lease to decide whether to exercise its right of first refusal.
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- Expiration or Termination of Franchise Agreement. Landlord agrees that the expiration or termination of the Franchise Agreement shall constitute a default under the Lease, giving Franchisor the right, but not
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, the franchise agreement grants certain rights and remedies to the franchisor (CHOP5 Franchise LLC) as a third party in relation to the lease agreement between the franchisee (Tenant) and the landlord.
Specifically, the landlord agrees to provide Chop5 Salad Kitchen with copies of all written default notices sent to the tenant (franchisee). Chop5 Salad Kitchen also has the right, but not the duty, to cure any default under the lease within 15 days following the expiration of any applicable cure period. In such an event, Chop5 Salad Kitchen may commence occupancy of the premises without needing consent from the landlord or tenant.
Furthermore, the tenant (franchisee) can assign the lease to Chop5 Salad Kitchen at any time without the landlord's prior consent. Chop5 Salad Kitchen also has the first right of refusal to lease the premises as the new tenant upon the expiration or termination of the lease, with a 30-day period to decide whether to exercise this right. The landlord also agrees that the expiration or termination of the franchise agreement constitutes a default under the lease, giving Chop5 Salad Kitchen certain rights.