factual

Does the landlord consent to the assignment of the lease to the Deka Lash franchisor?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 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.
  • VIII. Tenant and Landlord agree not to allow any surrender or other assignment of the Lease without the prior written consent of Franchisor.

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to Deka Lash's 2024 Franchise Disclosure Document, the landlord consents to the assignment of the lease to the franchisor, DL Franchising, LLC. The landlord's consent is documented within an agreement that outlines the conditions under which the lease can be assigned.

Specifically, the landlord agrees to the terms and provisions of the assignment agreement and to the assignment of the lease to Deka Lash. After the effective date of the assignment, Deka Lash has the right to sublease the premises to another franchisee without requiring further consent from the landlord. Deka Lash can also further assign the lease to another franchisee, provided that the new franchisee agrees to assume the tenant's obligations under the original lease. Upon such an assignment, Deka Lash will have no further liability under the lease.

Furthermore, the landlord agrees not to allow any surrender or other assignment of the lease without obtaining prior written consent from Deka Lash. This provision ensures that Deka Lash maintains control over the lease and the premises, even if the original tenant (the franchisee) defaults or otherwise relinquishes their rights. The agreement specifies that notices related to defaults will be given to Deka Lash concurrently with the tenant, providing Deka Lash with an opportunity to cure any defaults and protect its interest in the lease. This arrangement is beneficial for prospective franchisees as it ensures that Deka Lash can step in to maintain the lease and business operations if the franchisee faces difficulties.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.