Does the Assignee have an obligation to cure any default by the Assignor under the Lease for a Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned Lessor under the Lease:
- (a) Agrees to notify Assignee in writing of and upon Assignor's failure to cure any default by Assignor under the Lease;
- (b) Agrees that Assignee will have the right, but not the obligation, to cure any default by Assignor under the Lease within thirty (30) days after Lessor's delivery of notice of the default under section (a) above;
- (c) Consents to the Collateral Assignment and agrees that if Assignee takes possession of the premises the Lease demises and confirms to Lessor that it has assumed the Lease as tenant, Lessor will recognize Assignee as tenant under the Lease, provided that Assignee cures within the thirty (30) day period noted in section (b) above Assignor's defaults under the Lease; and
- (d) Agrees that Assignee may further assign the Lease to or enter into a sublease with a person, firm or corporation who agrees to assume the tenant's obligations under the Lease and is reasonably acceptable to Lessor and that upon that assignment Assignee will have no further liability or obligation under the Lease as assignee, tenant or otherwise, other than to certify that the additional assignee or sublessee operates the premises the Lease demises as a Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, if a lease is collaterally assigned, the assignee (new tenant) does not have an obligation to cure any default by the assignor (previous tenant), but does have the right to cure the default. The lessor (landlord) must notify the assignee in writing of any failure to cure a default by the assignor under the lease. The assignee has the right, but not the obligation, to cure any default by the assignor within thirty days after the landlord delivers notice of the default.
If the assignee takes possession of the premises, the landlord will recognize the assignee as the tenant under the lease, provided that the assignee cures the assignor's defaults within the thirty-day period. The assignee may further assign the lease or enter into a sublease with another party who agrees to assume the tenant's obligations, provided this party is reasonably acceptable to the landlord. Upon such assignment, the original assignee will have no further liability under the lease, except to certify that the new assignee or sublessee operates the premises as a Dermani Medspa franchised business.
This arrangement protects the landlord by ensuring defaults are addressed, while also providing flexibility for the Dermani Medspa franchisee in managing their lease obligations. It also allows for a smooth transition of the lease to a new tenant if the original franchisee assigns the lease, as long as the new tenant is acceptable to the landlord and continues to operate the business as a Dermani Medspa franchise.