Is Crawlspace Medic required to cure any monetary defaults of the tenant when assuming the lease?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.1. Franchisor, upon taking possession, shall execute and deliver to Landlord its assumption of the Tenant's rights and obligations under the Lease effective as of the date of such possession. Franchisor shall cure any non-monetary defaults of Tenant within thirty (30) days (or such longer time if reasonably required) of taking possession. Franchisor shall pay, perform and be bound by all of the duties and obligations of the Lease applicable to Tenant, effective as of the date of such Possession except that Franchisor shall not be required (a) to cure any monetary defaults of Tenant or (b) to assume or be bound by the terms of any amendment to the Lease executed by Tenant without obtaining Franchisor prior written approval thereof.
- 4.2. After Franchisor assumes Tenant's interests under the Lease, Franchisor may, at any time, and without the necessity of obtaining Landlord's prior consent, assign such interests or sublet the Premises to a franchisee of Franchisor. Upon receipt by Landlord of an assumption agreement pursuant to which the assignee franchisee agrees to assume the Lease and to observe the terms, conditions and agreements on the part of the Tenant to be performed under the Lease, Franchisor shall have no further liability to Landlord as assignee, tenant or otherwise. Any and all conditions, prohibitions, restrictions, fees or requirements for consent or approval shall not be applicable with respect to any assignment or subleasing by Franchisor to any franchisee of Franchisor. Without limiting the generality of any provision hereof, under no circumstances shall there be any restriction on, nor shall Landlord have any right to share in, the amount of rent or any other charge which Franchisor may charge to any franchisee of Franchisor with respect to any sublease or any assignment of the Lease and no provision of the Lease prohibiting the sale or transfer of any stock in the tenant under the Lease shall apply to Franchisor in the event either succeeds to the Tenant's interest in the Lease.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic is not required to cure any monetary defaults of the tenant when assuming the lease. However, Crawlspace Medic is obligated to cure any non-monetary defaults of the tenant within thirty days of taking possession of the property, or within a longer time frame if reasonably required.
Upon taking possession of the property, Crawlspace Medic must formally assume the tenant's rights and obligations under the lease, which becomes effective from the date of possession. Crawlspace Medic is then bound by all duties and obligations of the lease applicable to the tenant, with the exception of curing monetary defaults or being bound by lease amendments made by the tenant without Crawlspace Medic's prior written approval.
After assuming the tenant's interests in the lease, Crawlspace Medic has the right to assign these interests or sublet the premises to another Crawlspace Medic franchisee without needing the landlord's consent. Once the landlord receives an assumption agreement from the new franchisee, stating they will adhere to the lease terms, Crawlspace Medic is released from any further liability to the landlord.