Under what conditions can Face Foundrie Franchising L.L.C. succeed to the Tenant's interest in the Lease?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any provisions of this Lease to the contrary, Landlord hereby consents, without payment of a fee and without the need for further Landlord consent, to (a) the collateral assignment of Tenant's interest in this Lease to Franchisor to secure Tenant's obligations to Franchisor under the Franchise Agreement, and/or (b) Franchisor's succeeding to Tenant's interest in the Lease as a result of Franchisor's exercise of rights or remedies under such collateral assignment or as a result of Franchisor's termination of, or exercise of rights or remedies granted in or under, the Franchise Agreement or any other agreement between Franchisor and Tenant, and/or (c) Tenant's, Franchisor's and/or any other franchisee of Franchisor's assignment of the Lease to another franchisee of Franchisor with whom Franchisor has executed its then-standard franchise agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the landlord consents to Face Foundrie Franchising L.L.C.'s succeeding to the tenant's interest in the lease under specific conditions. This can occur without any fee or further consent from the landlord.
Specifically, Face Foundrie can succeed to the tenant's lease interest if it exercises its rights or remedies under a collateral assignment of the lease. This collateral assignment secures the tenant's obligations to Face Foundrie under the Franchise Agreement. Face Foundrie can also take over the lease if it terminates the Franchise Agreement or exercises any rights or remedies granted within it or any other agreement with the tenant.
Additionally, the landlord consents to the assignment of the lease to another Face Foundrie franchisee, provided Face Foundrie has executed its standard franchise agreement with that franchisee. This provision ensures Face Foundrie has multiple avenues to maintain control over the premises and continue operations, even if the original franchisee defaults or the franchise agreement is terminated.