Can Face Foundrie unilaterally assign the Franchise Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------------------------------------------| | , AS "LANDLORD" | | AND | | , AS "TENANT" FOR THE DEMISED | | PREMISES ("PREMISES") DESCRIBED THEREIN |
This Lease Rider (this "Rider") and the provisions hereof are hereby incorporated into the body of the lease to which this Rider is attached (the "Lease"), and the provisions hereof shall be cumulative of those set forth in the Lease, but to the extent of any conflict between any provisions of this Rider and the provisions of the Lease, this Rider shall govern and control.
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- Consent to Collateral Assignment to Franchisor; Disclaimer. Landlord acknowledges that Tenant intends to operate a Face Foundrié Facial Bar in the Premises and that Tenant's rights to operate a Face Foundrié Facial Bar and to use the Face Foundrié Facial Bar name, trademarks and service marks are solely pursuant to a franchise agreement ("Franchise Agreement'') between Tenant and Face Foundrié Franchising L.L.C. ("Franchisor"). Tenant's operations at the Premises are independently owned and operated. Landlord acknowledges that Tenant alone is responsible for all obligations under the Lease unless and until Franchisor or another franchisee expressly assumes such obligations and takes actual possession of the Premises.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, under certain conditions, Face Foundrie can assign a tenant's interest in the lease to another franchisee without the landlord's consent. Specifically, the Landlord consents to the collateral assignment of the Tenant's interest in the Lease to Face Foundrie to secure the Tenant's obligations to Face Foundrie under the Franchise Agreement. This enables Face Foundrie to ensure that the lease obligations are met, even if the original tenant/franchisee faces difficulties.
Additionally, the Landlord consents to Face Foundrie succeeding to the Tenant's interest in the Lease if Face Foundrie exercises its rights or remedies due to the termination of the Franchise Agreement or any other agreement between Face Foundrie and the Tenant. This provision allows Face Foundrie to maintain control over the location and continue operations, if necessary, by stepping into the Tenant's role.
Furthermore, the Landlord consents to the assignment of the Lease to another Face Foundrie franchisee with whom Face Foundrie has a standard franchise agreement. This facilitates the smooth transfer of the location to a new franchisee, ensuring business continuity and adherence to Face Foundrie's standards. These rights are typically included in franchise agreements to allow the franchisor flexibility in managing the network and protecting the brand.
This clause is beneficial for Face Foundrie as it provides options for business continuity and brand protection. For a prospective franchisee, it means that the location of their Face Foundrie Facial Bar could potentially be transferred to another operator under certain circumstances, which could impact their business environment.