Does Endless Summer Sweets assume any liability with respect to the leased premises by executing the rider?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Right to Enter. Upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Franchisor or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
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- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, Endless Summer Sweets does not assume liability with respect to the leased premises or any obligation as the tenant under the lease by executing the rider to the lease agreement. However, if Endless Summer Sweets or its designee enters the leased premises to remove signs and other materials bearing Endless Summer Sweets' brand name, trademarks, and commercial symbols after the termination or expiration of the Franchise Agreement or the lease, Endless Summer Sweets will be liable to the landlord for any damage they cause during the removal process. This is on the condition that Endless Summer Sweets provides reasonable prior notice to the landlord before entering the premises.
This clause protects Endless Summer Sweets from being held responsible for the franchisee's obligations under the lease, such as rent payments or property maintenance. However, it also makes Endless Summer Sweets liable for any damages caused by their actions or the actions of their representatives when removing their branding and materials from the location after the franchise agreement ends.
For a prospective Endless Summer Sweets franchisee, this means they are solely responsible for fulfilling the terms of their lease agreement. It also highlights the importance of ensuring a smooth and damage-free transition if the franchise agreement terminates, as Endless Summer Sweets will be responsible for any damages incurred during the de-identification process. This is a fairly standard clause in franchise agreements, as franchisors typically want to avoid direct liability for the franchisee's lease obligations while retaining the right to protect their brand identity after a franchise ends.