According to the Crawlspace Medic FDD, to whom is the 'Tenant' contract addressed?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| THIS COLLATERAL ASSIGNMENT OF LEASE AGREEMENT (this or the |
|---|
| "Agreement") made this |
| day of |
| , 20 |
| by and |
| between |
| (hereinafter referred to as "Landlord"), |
| (hereinafter referred to as |
| "Tenant"); and CSM Franchise Group, LLC, a South Carolina |
| limited |
| liability company |
| (hereinafter referred to as "Franchisor"). |
| Landlord has leased to Tenant certain premises known as |
| (the |
| "Premises"), |
| under |
| the |
| terms of a Lease executed concurrently herewith, (the "Lease"), for Tenant's use of the same as a |
| Crawlspace Medic location |
| pursuant to a franchise agreement between Franchisor and Tenant, as |
| franchisee (the "Franchise Agreement"). |
| This Agreement is entered into in consideration of and in connection with |
| Franchisor's approval of the Premises as a Crawlspace Medic location |
| and the grant of a franchise |
| to Tenant. This Agreement is intended to provide Franchisor and with the opportunity to preserve |
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the 'Tenant' in the Collateral Assignment of Lease Agreement is a party that has leased certain premises from the 'Landlord'. These premises will be used as a Crawlspace Medic location. The agreement is made by and between the Landlord and the Tenant. CSM Franchise Group, LLC, referred to as 'Franchisor', is also a party to the agreement.
The agreement is contingent upon the Franchisor's approval of the location and the granting of a franchise to the Tenant. This arrangement allows the Franchisor to maintain some control over the leased premises.
This agreement ensures that Crawlspace Medic has the opportunity to preserve the location as a Crawlspace Medic franchise, even if the franchisee (Tenant) defaults on their lease or the Franchise Agreement is terminated.