Under what circumstances can Chop5 Salad Kitchen enter the premises without being guilty of trespass?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
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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.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, Chop5 Franchise LLC, referred to as Franchisor, has specific rights regarding the premises of a franchised location. If the tenant, meaning the franchisee, defaults under the lease agreement, Chop5 Salad Kitchen has the right, but not the duty, to cure the default within 15 days following the expiration of any applicable cure period. In such an event, Chop5 Salad Kitchen can immediately commence occupancy of the premises as the tenant under the lease without needing consent from the landlord or the franchisee.
Following the commencement of occupancy, Chop5 Salad Kitchen has the option to assign the lease to another Chop5 Salad Kitchen franchisee or to an entity owned or controlled by the franchisor. However, to do so, Chop5 Salad Kitchen must first obtain written approval from the landlord for the assignee, which the landlord cannot unreasonably withhold or delay. The landlord must acknowledge any such assignment in writing.
Additionally, the franchisee can assign the lease to Chop5 Salad Kitchen at any time, including upon the expiration or termination of the Franchise Agreement, without needing the landlord's prior consent. In this scenario, Chop5 Salad Kitchen can then assign the lease to another franchisee or an entity they own or control, again requiring the landlord's written approval, which cannot be unreasonably withheld or delayed. The landlord will acknowledge the assignment in writing, and no assignment fee or rental acceleration will result from these actions. These stipulations protect Chop5 Salad Kitchen's interest in maintaining control and continuity of the restaurant's location, even in situations where the franchisee faces difficulties or the franchise agreement ends.