Are there any exceptions to the Endless Summer Sweets franchisor's right of first refusal?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
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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
the Lease which limits Tenant's right to own or operate other Endless Summer Sweets outlets in proximity to the Leased Premises shall not apply to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
The 2024 Endless Summer Sweets Franchise Disclosure Document states that if the Franchise Agreement between the franchisor 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 the franchisor. The landlord consents to this assignment.
If Endless Summer Sweets becomes the lessee of the leased premises, it has the right to assign or sublease its lease to another Endless Summer Sweets franchisee.
According to the FDD, any provision of the lease that limits the tenant's right to own or operate other Endless Summer Sweets outlets in proximity to the leased premises does not apply to the franchisor.