What is the 'Premises' referring to in the context of the Crawlspace Medic Collateral Assignment of Lease Agreement?
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 |
SECTION I GRANT OF OPTION
the continued use of the Premises as a Crawlspace Medic location under circumstances hereinafter set forth. In consideration of the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as
- 1.1. Landlord grants to Franchisor the options to lease the Premises pursuant to the terms, covenants and conditions hereinafter set forth (each an "Option" and collectively the "Options"). Tenant recognizes the Options and acknowledges that its rights as tenant under and pursuant to the Lease are under and subject to the Options.
- 1.2. Upon default of Tenant under Lease. Landlord shall send Franchisor copies of all default notices, warning and termination letters and notices it gives to Tenant concurrently with giving such notices to Tenant. If Tenant fails to cure any defaults within the period specified in the Lease and Landlord intends to terminate the Lease and/or Tenant's right of possession of the Premises, Landlord shall promptly give Franchisor written notice thereof, specifying the defaults Tenant has failed to cure and shall offer Franchisor, without any conditions other than those set forth in this Collateral Assignment of Lease, the Option to assume the Tenant's interests, or former interests, in the Lease. Franchisor shall exercise the Option, if at all, by written notice to Landlord and Tenant within thirty (30) days after receipt of Landlord's notice.
- 1.3. Upon Termination of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the "Premises" in the Collateral Assignment of Lease Agreement refers to the physical location that the Landlord has leased to the Tenant. This location is intended for use as a Crawlspace Medic franchise. The agreement is made between the Landlord, the Tenant (who is the franchisee), and CSM Franchise Group, LLC (the Franchisor).
The Collateral Assignment of Lease Agreement ensures that Crawlspace Medic has the opportunity to maintain the location as a Crawlspace Medic franchise, even if the original tenant defaults on the lease or the franchise agreement is terminated. This is achieved through options granted to the Franchisor to assume the lease under certain conditions.
Specifically, if the Tenant defaults on the lease, the Landlord must notify Crawlspace Medic, offering them the option to take over the lease. Similarly, if the Franchise Agreement is terminated, Crawlspace Medic has the option to assume the Tenant's interest in the lease. This agreement also specifies that if the lease term expires and the Tenant does not renew, Crawlspace Medic has the option to exercise the renewal rights. If Crawlspace Medic does not exercise its option to take over the lease after termination of the Franchise Agreement or Lease, the Tenant must remove all Crawlspace Medic branding from the Premises.