Who can an Extreme Art Studio tenant sublease or assign their interest in the lease to?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, if Extreme Art Studio accepts an assignment and assumes the lease, they have the right to sublet or reassign the lease to another Franchise Assignee without the landlord's consent. In this case, Extreme Art Studio would be released from any obligations or liability under the lease.

The FDD defines "Franchise Assignee" as (i) Extreme Art Studio or (ii) Extreme Art Studio's parent, subsidiary, or affiliate. This means that if Extreme Art Studio takes over a lease, they can then reassign it to one of these entities without needing further approval from the landlord.

This clause provides Extreme Art Studio with flexibility in managing leases and studio locations. It allows them to transfer a lease to a related entity if needed, without being hindered by the landlord's approval process. For a franchisee, this could mean that Extreme Art Studio might step in to manage or reassign a lease if the franchisee is unable to continue operating at a specific location, potentially providing a solution for the franchisee's lease obligations.