If Cinnaholic Franchising LLC takes over the lease, what rights does it have?
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, Cinnaholic Franchising LLC has specific rights if it takes over a lease. Cinnaholic has the right, but not the obligation, to cure any default by the tenant (franchisee) under the lease. This can be done within the franchisee's cure period or within 30 days after the cure period expires, provided Cinnaholic notifies the landlord in writing of its intent to cure the default before the franchisee's cure period ends.
However, 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 under the lease. The franchisee remains responsible for these obligations until Cinnaholic assumes the lease. Additionally, the franchisee and lessor cannot modify or terminate the lease without Cinnaholic's written consent, giving Cinnaholic some control over the lease terms.
In the event the lessor (landlord) files for bankruptcy protection, the franchisee has the right to assign to Cinnaholic its right to elect to accede to the lessor's bankruptcy rejection of the lease. To secure the franchisee's performance of the lease and the Franchise Agreement, Cinnaholic has an interest superior to the lessor on all the franchisee's trade fixtures, which are defined as all merchandise, signs, fixtures, furniture, furnishings, partitions, and equipment installed and owned by the tenant.