Is a Conditional Assignment of Lease included as an attachment to the Fat Shack Disclosure Document?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Your lease is then conditionally assigned to us as security for your timely performance of all obligations under the Franchise Agreement. You are responsible for obtaining the landlord's consent to the conditional assignment. A copy of a standard form of Conditional Assignment of Lease is attached to this Disclosure Document as Attachment D.
Source: Item 22 — Contracts (FDD page 53)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a standard form of Conditional Assignment of Lease is included as Attachment D to the Disclosure Document. The lease agreement between the franchisee and the landlord is conditionally assigned to Fat Shack as security for the franchisee's obligations under the Franchise Agreement.
The franchisee is responsible for obtaining the landlord's consent to this conditional assignment. This means the franchisee must ensure the landlord agrees to the terms that allow Fat Shack to assume the lease under certain conditions.
These conditions include situations where the franchisee defaults on the lease or Franchise Agreement, or if either the lease or Franchise Agreement is terminated. This arrangement protects Fat Shack's interests by giving them the option to take over the premises to continue operating a Fat Shack restaurant if the franchisee fails to meet their obligations.