What is the monetary consideration mentioned in the Conditional Assignment of Lease for Fat Shack?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| day of, 202 by and between | THIS CONDITIONAL ASSIGNMENT OF LEASE ("Assignment") is made as of this , a |
|---|---|
| ("Assignor"), FAT SHACK INC., a Delaware corporation ("Assignee") and , a ("Landlord"). WHEREAS, Assignor is a tenant of certain property generally known as , located in the City of , State | |
| of Assignor, dated | ("Property"), pursuant to a lease by and between Landlord and , 202 (the "Lease"); WHEREAS, Assignor desires to construct, or have constructed by Landlord (whichever is applicable), and thereafter operate a FAT SHACK Restaurant under a certain franchise agreement between Assignor and Assignee (the "Franchise Agreement"); and WHEREAS, as a condition to the grant of rights under the Franchise Agreement to Assignor, Assignee requires that Assignor enter into this Assignment. NOW, THEREFORE, for and in consideration of the sum of Ten Dollars and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: |
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Conditional Assignment of Lease involves a monetary consideration. As stated in the document, the agreement is made "for and in consideration of the sum of Ten Dollars and other good and valuable consideration, the receipt of which is hereby acknowledged".
This means that, as part of the agreement for the Conditional Assignment of Lease, the Assignor (tenant) receives $10, along with other unspecified benefits. This type of arrangement is common in contractual agreements to demonstrate that there is an exchange of value between the parties, even if the monetary amount is nominal.
For a prospective Fat Shack franchisee, this clause indicates that the franchisor requires a formal assignment of the lease as a condition of granting franchise rights. The franchisee, as the Assignor, agrees to this assignment in exchange for the franchise rights and the $10 consideration. This assignment is conditional, meaning it only becomes effective if certain events occur, such as the franchisee defaulting on the lease or franchise agreement.