According to the Cinnaholic Collateral Assignment of Lease, what is the 'Leased Premises'?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
the have assumed expressly all of the the party of the first part, and Tenant under the terms and | performance of the Lease Franchisor shall have the option Franchisor elects to exercise said written notice of its election not have the right of possession receipt of notice of Tenant/Lessee in said Lease in the place and instead of terms, shall likewise be entitled conditions of the Lease, with the | or the Franchise of taking over option of taking to do so shall of the Leased exercise of such option, covenants, and obligations of the to enjoy all of the right to reassign | 3. That Franchisor shall have the right, but shall not be obligated, to cure any default by Tenant under the Lease within Tenant's cure period under the Lease, or within thirty (30) days after the expiration of Tenant's cure period under the Lease, provided that prior to the expiration of Tenant's cure period under the Lease, Franchisor notifies Landlord in writing that Franchisor intends to cure such default;
same to any tenant or franchisee who can demonstrate a net worth of $250,000, or otherwise to a
- It is understood and agreed that so long as Franchisor shall not have exercised its option under the foregoing provisions hereof as to the Leased Premises, Franchisor shall not be liable for rent or any obligation of Tenant under and by virtue of or in connection with the Lease, and Tenant shall remain liable for such rent and obligations;
subsidiary/affiliate of Franchisor;
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- Tenant and Lessor shall not, by agreement or alone, modify or terminate this lease without written consent of Franchisor;
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Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the franchisor retains certain rights regarding the leased premises for a Cinnaholic bakery. Specifically, if a franchisee (referred to as 'Tenant' in the lease agreement) defaults on their lease, Cinnaholic has the option, but not the obligation, to correct the default within the cure period allowed to the tenant or within 30 days after that period expires. To exercise this option, Cinnaholic must notify the landlord in writing of their intent to cure the default before the tenant's cure period ends.
However, the document clarifies that as long as Cinnaholic has not exercised its option to take over the leased premises, it is not liable for the franchisee's rent or any other obligations under the lease. The franchisee remains fully responsible for these payments and obligations. This arrangement protects Cinnaholic from being automatically burdened with the lease if a franchisee fails to meet their financial responsibilities.
The agreement also includes stipulations to prevent the franchisee and landlord from altering or terminating the lease without Cinnaholic's written consent. Additionally, if the landlord files for bankruptcy protection, the franchisee can assign to Cinnaholic the right to reject the lease. To further secure the franchisee's performance and facilitate the agreement, Cinnaholic holds a superior interest over the landlord in all of the franchisee's trade fixtures, which are defined as merchandise, signs, fixtures, furniture, furnishings, partitions, and equipment installed and owned by the tenant.