Under what conditions can a Crisp & Green franchisee assign their lease to the franchisor?
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; provided, however, such franchisee shall agree to operate the Premises pursuant to a franchise agreement with Franchisor. Franchisor, or its affiliate, shall only be responsible for obligations under the Lease arising or incurred during such time that Franchisor, or such affiliate, is the tenant under the Lease.
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- Default and Notice. In the event there is a default or violation by Tenant under the terms of the Lease, Landlord agrees to give Franchisor written notice of such default or violation on the same day Landlord provides such notice to Tenant.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee has the right to assign their lease to Crisp & Green, or its affiliates, at any time during the lease term, including extensions or renewals, without needing the landlord's consent. However, such assignment becomes effective only after Crisp & Green or its affiliate provides written notice of acceptance to the landlord.
If Crisp & Green, or its affiliate, accepts the lease assignment, the original franchisee remains liable for all responsibilities and obligations under the lease that occurred before the assignment date, including any amounts owed to the landlord. After the assignment, Crisp & Green, or its affiliate, can then assign the lease or sublease the premises to another Crisp & Green franchisee without the landlord's prior consent or approval. The new franchisee must agree to operate the premises under a franchise agreement with Crisp & Green.
Crisp & Green, or its affiliate, is only responsible for lease obligations that arise or are incurred while they are the tenant under the lease. Additionally, upon a franchisee's default and failure to cure the default under either the lease or the Franchise Agreement, Crisp & Green has the right, but not the obligation, to unilaterally accept assignment of the franchisee's interest in the lease. Similarly, upon the expiration or termination of the Franchise Agreement, Crisp & Green has the right, but not the obligation, to unilaterally accept assignment of the franchisee's interest in the lease.