When Crawlspace Medic takes possession of a lease, what action must it take regarding the landlord?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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. If the Franchise Agreement is terminated for any reason during the term of the Lease, or any extension or removal thereof, Franchisor shall have the Option to assume the Tenant's interest in the Lease. Franchisor shall exercise the Option, if at all, by Franchisor's written notice thereof to Landlord and Tenant, whereupon Tenant shall be deemed to have assigned its interest to Franchisor.
- 1.4. Upon Non-Renewal of the Lease Term. If the Lease contains term renewal or extension rights and the term is allowed to expire by Tenant without exercising said rights, Landlord shall promptly give written notice thereof to Franchisor, but in no event later than thirty (30) days following expiration of the renewal or extension option and Franchisor shall have an Option, for an additional thirty (30) days after receipt thereof, to exercise the Tenant's renewal rights on the same terms and conditions as contained in the Lease. If Franchisor elects to exercise such right to renew or extend
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
The 2024 Crawlspace Medic Franchise Disclosure Document outlines specific procedures regarding lease agreements and the relationship between the landlord, the tenant (franchisee), and Crawlspace Medic. Crawlspace Medic has options to lease the premises under certain conditions, and the landlord acknowledges these options, making the franchisee's rights subject to them.
If the franchisee defaults on their lease, the landlord must send Crawlspace Medic copies of all default notices, warning letters, and termination notices simultaneously with sending them to the franchisee. If the franchisee fails to correct the defaults, the landlord must offer Crawlspace Medic the option to assume the franchisee's interests in the lease. Crawlspace Medic has 30 days to exercise this option by providing written notice to both the landlord and the franchisee.
Similarly, if the Franchise Agreement is terminated for any reason during the lease term, Crawlspace Medic has the option to assume the franchisee's interest in the lease by providing written notice to the landlord and tenant. Additionally, if the lease contains renewal or extension rights that the franchisee does not exercise, the landlord must notify Crawlspace Medic, giving Crawlspace Medic an option to exercise those renewal rights within 30 days. These stipulations ensure Crawlspace Medic has the ability to maintain control over the location and continue operations, even if the original franchisee is unable or unwilling to do so.