What is the 'Effective Date' for the assignment of the lease to the Deka Lash franchisor?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- V. The date upon which the assignment shall be effective (the "Effective Date"), is the date upon which Landlord and Tenant receive written notice from Franchisor that:
- a. Franchisor will cure the default of Tenant in the Lease in which Landlord has given notice to Franchisor pursuant to the provisions of Section 3 above, and that Franchisor will assume the Lease; or
- b. The events described in either subsections 2(b), 2(c), 2(d) or 2(e) above have occurred and that Franchisor will assume the Lease.
- VI. As of the Effective Date, Franchisor will assume all rights, duties, responsibilities and obligations of Tenant arising on or after the Effective Date pursuant to the terms and provisions of the Lease.
- VII. Landlord hereby consents to the terms and provisions of this Agreement, and to the assignment of the Lease to Franchisor. Landlord agrees that after the Effective Date, Franchisor may (i) enter into a sublease with any other franchisee of Franchisor without Landlord's further consent, or (ii) further assign the Lease to a franchisee of Franchisor who shall agree to assume Tenant's obligations under the Lease. Landlord further agrees that upon the occurrence of any such assignment, Franchisor shall have no further liability or obligation under the Lease.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the date upon which the assignment of the lease shall be effective, or the "Effective Date", is determined when the Landlord and Tenant receive written notice from Deka Lash that one of two conditions has been met. The first condition is that Deka Lash will cure the default of the Tenant (the franchisee) in the lease, for which the Landlord has given notice to Deka Lash, and that Deka Lash will assume the lease. The second condition is that certain events have occurred, and Deka Lash will assume the lease. These events include default by the Tenant under the terms of the lease or Franchise Agreement, the Tenant's voluntary or involuntary institution of insolvency or bankruptcy proceedings, the Tenant's discontinuation of Deka Lash operation at the premises, or the Tenant's nonrenewal of the Franchise Agreement.
As of the Effective Date, Deka Lash will assume all the rights, duties, responsibilities, and obligations of the Tenant arising on or after the Effective Date, according to the terms and provisions of the lease. The landlord consents to the terms and provisions of the agreement and to the assignment of the lease to Deka Lash.
The landlord also agrees that after the Effective Date, Deka Lash may enter into a sublease with any other franchisee of Deka Lash without the landlord's further consent or further assign the lease to a Deka Lash franchisee who agrees to assume the Tenant's obligations under the lease. Upon the occurrence of any such assignment, Deka Lash will have no further liability or obligation under the lease.