Can a Crown Gold Exchange franchisee assign or sublet the lease to Goldmember, LLC?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Assignment and Subletting. Notwithstanding any provision of the Lease to the contrary, Tenant shall have the right to assign or sublet the Lease to Franchisor, provided that no such assignment or sublease shall relieve Tenant or any guarantor of liability under the Lease. If Franchisor becomes the lessee of the Leased Premises, then Franchisor shall have the right to assign or sublease its lease to a franchisee of the Crown Gold Exchange brand. Any provision of the Lease which limits Tenant's right to own or operate other Crown Gold Exchange outlets in proximity to the Leased Premises shall not apply to Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a franchisee's ability to assign or sublet their lease is specifically addressed within the context of the relationship between the tenant (franchisee), the landlord, and Crown Gold Exchange itself.
The document states that the franchisee (referred to as Tenant in the lease context) has the right to assign or sublet the lease specifically to Crown Gold Exchange (referred to as Franchisor). However, this assignment or sublease does not relieve the franchisee of their liability under the lease. Furthermore, if Crown Gold Exchange becomes the lessee, they then have the right to assign or sublease the lease to another Crown Gold Exchange franchisee.
The FDD does not explicitly state whether a franchisee can assign or sublet the lease to Goldmember, LLC. It only specifies the conditions under which assignment or subletting to Crown Gold Exchange is permitted and Crown Gold Exchange's subsequent right to assign or sublease to another franchisee. A prospective franchisee should seek clarification from Crown Gold Exchange regarding the possibility of assigning or subletting the lease to other entities like Goldmember, LLC, as the document does not provide a definitive answer.