Is Endless Summer Sweets obligated to pay amounts owed by the franchisee to a supplier?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay all taxes when due.
If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due.
If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
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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)
Based on the 2024 Endless Summer Sweets Franchise Disclosure Document, Endless Summer Sweets is not obligated to pay amounts owed by the franchisee to a supplier. The FDD states that the franchisee is responsible for managing their own finances, including paying taxes, loan payments, and rent payments when due.
Additionally, regarding the lease for the location, the landlord must provide Endless Summer Sweets with copies of any default notices given to the franchisee and grants Endless Summer Sweets the option, but not the obligation, to cure any default under the lease within ten days after the period in which the franchisee may cure the default. If the lease is terminated due to the franchisee's default, Endless Summer Sweets has the option to enter into a new lease with the landlord under the same terms and conditions as the terminated lease.
Furthermore, the FDD clarifies that by executing the lease rider, Endless Summer Sweets does not assume any liability with respect to the leased premises or any obligation as the tenant under the lease. This reinforces that the franchisee is solely responsible for their financial obligations, and Endless Summer Sweets does not take on the franchisee's debts or liabilities.