Is Endless Summer Sweets liable as a tenant under the lease by executing the rider?

According to the 2024 Endless Summer Sweets FDD, Endless Summer Sweets does not assume any liability as a tenant under the lease by executing the rider. Specifically, the rider to the lease agreement includes a clause stating that "By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease."

This provision protects Endless Summer Sweets from being held responsible for the franchisee's obligations under the lease. However, if the Franchise Agreement between Endless Summer Sweets and the tenant is terminated, the tenant must assign the lease to Endless Summer Sweets upon written request. Landlords agree to this assignment. If Endless Summer Sweets becomes the lessee, they can then assign or sublease the property to another Endless Summer Sweets franchisee.

This arrangement benefits Endless Summer Sweets by allowing them to maintain control over the location and ensure continued operation of an Endless Summer Sweets franchise at that site, even if the original franchisee defaults or the franchise agreement is terminated. However, Endless Summer Sweets will be liable to the landlord for any damage Endless Summer Sweets or its designee causes by removing signs and other material bearing Endless Summer Sweets's brand name, trademarks, and commercial symbols.