What consideration is given for the Conditional Assignment of Lease agreement related to a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord hereby consents to the terms and provisions of this Agreement, and to the conditional assignment of the Lease to Assignee.
Landlord agrees that after the Effective Date, Assignee may (i) enter into a sublease with any FLOYD'S 99 franchisee without Landlord's further consent, or (ii) further assign the Lease to a person, firm or corporation who shall agree to assume the tenant's obligations under the Lease and who is reasonably acceptable to Landlord.
Landlord further agrees that upon the occurrence of any such assignment, Assignee shall have no further liability or obligation under the Lease as Assignee, tenant or otherwise, and that concurrent with such assignment, Landlord will enter into a replacement Conditional Assignment of Lease Agreement by and between Assignee and the new tenant.
Assignor agrees to indemnify and hold harmless Assignee from any loss, liability, cost or expense incurred or suffered by Assignee under this Agreement.
Assignor and Landlord agree not to allow any surrender, amendment, modification or termination or other assignment of the Lease without the prior written consent of Assignee.
Throughout the term of the Lease, Assignor agrees that it shall elect and exercise all options to extend the term of or renew the Lease not less than 30 days prior to the last day said option must be exercised, unless Assignee otherwise agrees in writing.
Assignor hereby grants to Assignee a power of attorney to exercise an extension or renewal option for the Lease in the name, place and stead of Assignor and Landlord agrees to accept Assignee's exercise of such option.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the landlord consents to the terms and provisions of the Conditional Assignment of Lease to the Assignee. After the agreement's effective date, the Assignee has the right to sublease with any Floyds 99 franchisee without needing further consent from the landlord. The Assignee can also assign the lease to another party who agrees to assume the tenant's obligations, provided this party is reasonably acceptable to the landlord.
Upon any such assignment, the Assignee is relieved of further liability or obligation under the lease. Simultaneously, the landlord will enter into a replacement Conditional Assignment of Lease Agreement with the new tenant and the Assignee. This ensures a smooth transition of lease responsibilities and liabilities as the franchise changes hands.
Furthermore, the assignor (original tenant) agrees to protect the assignee from any losses or expenses incurred under this agreement. The assignor and landlord also commit not to alter, surrender, amend, modify, terminate, or assign the lease without the assignee's prior written consent. The assignor must also exercise all lease extension or renewal options at least 30 days before the deadline, unless the assignee agrees otherwise in writing, and grants the assignee a power of attorney to exercise these options if the assignor fails to do so.