What must a Crisp & Green franchisee comply with when transferring a previously signed Franchise Agreement for a Franchised Restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
e Premises for the operation of a CRISP & GREEN Restaurant as contemplated by the Franchise Agreement is in compliance with, and does not violate, any restriction or covenant regarding use of the Premises, and (ii) no other party has any contractual right inconsistent with the use of the Premises for the operation of a CRISP & GREEN Restaurant.
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- Assignment. Tenant has the right to assign all of its right, title and interest in the Lease to Franchisor, or its affiliates, at any time during the term of the Lease, including any extensions or renewals, without first obtaining Landlord's consent to such assignment; provided, however, no assignment of the Lease will be effective until Franchisor or its designated affiliate gives Landlord written notice of its acceptance of such assignment. If Franchisor, or its affiliate, elects to accept assignment of the Lease under this paragraph or unilaterally accepts assignment of the Lease as provided for in this Addendum, then Landlord and Tenant agree that (i) Tenant will remain liable for the responsibilities and obligations under the Lease, including without limitation,
amounts owed to Landlord, prior to the date of such assignment, and (ii) Franchisor, or its affiliate, will have the right to thereafter assign the Lease or sublease the Premises to a franchisee of Franchisor without the prior consent or approval of Landlord;
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document, a franchisee (referred to as Tenant in the lease agreement) has the right to assign their interest in the lease to Crisp & Green Franchising LLC (referred to as Franchisor), or its affiliates, at any point during the lease term, including any extensions or renewals, without needing the landlord's prior consent. However, such assignment becomes effective only when Crisp & Green or its designated affiliate provides the landlord with written notice of accepting the assignment.
If Crisp & Green, or its affiliate, chooses to accept the lease assignment, the original franchisee (Tenant) remains responsible for all obligations and amounts owed to the landlord before the assignment date. Following the assignment, Crisp & Green, or its affiliate, can then assign the lease or sublease the premises to another Crisp & Green franchisee without requiring the landlord's consent or approval.
It is important to note that Crisp & Green, or its affiliate, is only responsible for lease obligations that arise or are incurred during the period they are the tenant under the lease. Additionally, any subsequent franchisee must agree to operate the premises according to a franchise agreement with Crisp & Green.