Is the Guaranty for Endless Summer Sweets transferable by the Franchisor?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- Notice of Default and Opportunity to Cure. Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within ten (10) days after the expiration of the period in which Tenant may cure the Default.
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- Termination of Lease. Proprietor shall copy Franchisor on any notice of termination of the Lease. If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease. To exercise this option, Franchisor must notify Landlord within fifteen (15) days after Franchisor receives notice of the termination of the Lease.
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- Termination of Franchise Agreement. If the Franchise Agreement between Franchisor and Tenant is terminated during the term of the Lease, then upon the written request of Franchisor, Tenant shall assign the Lease to Franchisor. Landlord hereby consents to the assignment of the Lease to Franchisor.
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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 Endless Summer Sweets brand. Any provision of
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
Based on the 2024 Endless Summer Sweets Franchise Disclosure Document, the Landlord has to provide Endless Summer Sweets with copies of any default notice given to the tenant under the lease and grants Endless Summer Sweets the option to cure any default under the lease within ten days after the period in which the tenant may cure the default.
Additionally, the landlord must copy Endless Summer Sweets on any notice of termination of the lease. If the landlord terminates the lease for the tenant's default, Endless Summer Sweets has the option to enter into a new lease with the landlord on the same terms and conditions as the terminated lease. To exercise this option, Endless Summer Sweets must notify the landlord within fifteen days after receiving notice of the termination of the lease.
Furthermore, if the Franchise Agreement between Endless Summer Sweets and the tenant is terminated during the term of the lease, then upon the written request of Endless Summer Sweets, the tenant must assign the lease to Endless Summer Sweets, and the landlord consents to this assignment. Endless Summer Sweets also has the right to assign or sublease its lease to a franchisee of the Endless Summer Sweets brand if it becomes the lessee of the leased premises.