If Cinnaholic Franchising LLC elects to take over the Leased Premises, what is required of them?
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 Cinnaholic's 2025 Franchise Disclosure Document, if Cinnaholic Franchising LLC chooses to take over a leased premises, it has the right to cure any default by the tenant (the franchisee) under the lease. Cinnaholic can exercise this right within the franchisee's cure period as defined in the lease, or within thirty (30) days after the cure period expires. However, to do so, Cinnaholic must notify the landlord in writing before the franchisee's cure period ends that it intends to cure the default.
However, the document specifies that as long as Cinnaholic has not exercised its option to take over the leased premises, it is not liable for rent or any other obligations of the tenant (franchisee) under the lease. The franchisee remains responsible for these obligations until Cinnaholic actually assumes the lease. This arrangement protects Cinnaholic from being automatically responsible for the lease unless it actively decides to step in.
Furthermore, the franchisee and lessor (landlord) cannot modify or terminate the lease without Cinnaholic's written consent. This provision ensures that Cinnaholic maintains control over the lease terms and prevents any changes that could negatively impact its future options regarding the property. Additionally, in the event the lessor files for bankruptcy, the franchisee has the right to assign to Cinnaholic its right to elect to accede to Lessor's bankruptcy rejection of the Lease. Cinnaholic also maintains an interest superior to the Lessor on all the franchisee's trade fixtures to secure the franchisee's performance of the lease and franchise agreement.