Who is responsible for lease obligations accruing before the assignment of the lease to Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The tenant will remain solely responsible for all obligations, debts and payments under the lease accruing before the effective date of any assignment to us (or our designee).
(f) The landlord will not amend or otherwise modify the lease in any manner that would affect any of the foregoing requirements without our prior written consent (which will not be unreasonably withheld).
(g) The total possible term of the lease (including the initial term and all renewal terms that are at the tenant's option) must be for at least five (5) years.
(h) Upon expiration or termination of this Agreement, we (or our designee) will have the right to an assignment of the lease with the landlord's consent (which consent will not be unreasonably withheld) and without payment of any assignment fee or similar charge or increase in any rent.
The tenant will remain solely responsible for all obligations, debts and payments under the lease accruing before the effective date of any assignment to us (or our designee).
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the tenant is responsible for all lease obligations, debts, and payments that accrue before the lease is assigned to Crepe De Licious. This means that if a franchisee's lease is eventually assigned to Crepe De Licious (or its designee), the franchisee remains liable for any outstanding financial responsibilities under the lease up to the date of that assignment.
This provision protects Crepe De Licious from assuming prior liabilities associated with the lease. It ensures that the franchisee fulfills their financial commitments before transferring the lease. For a prospective franchisee, this highlights the importance of maintaining good standing with the landlord and fulfilling all lease obligations promptly.
It is common practice in franchising for the franchisee to be responsible for their own debts and obligations. This clause simply clarifies that the franchisee's responsibility extends to lease obligations incurred before any potential assignment of the lease to Crepe De Licious. Franchisees should carefully review their lease agreements and maintain accurate records of all payments to avoid any disputes during a potential assignment.