What is the 'Lease' referring to in the Floyds 99 Conditional Assignment of Lease agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS CONDITIONAL ASSIGNMENT OF LEASE ("Agreement") is made as of this day of |
|---|
| , |
| 20 |
| by |
| and |
| between |
| , |
| a |
| ("Assignor"), FLOYD'S 99 |
| FRANCHISING, LLC, |
| a Colorado limited liability |
| company ("Assignee") and ("Landlord"). |
| A. |
| Assignor |
| is |
| a |
| tenant |
| ("Tenant") |
| of |
| certain |
| property |
| generally |
| known |
| as |
| , |
| located |
| in |
| the |
| City |
| of |
| , |
| State |
| of |
| ("Property"), pursuant to a lease by and between Landlord and Assignor, dated |
| , 20 (the "Lease"). |
| B. |
| Assignor desires to construct, or have constructed by Landlord (whichever is applicable), and |
| thereafter operate a FLOYD'S 99 Shop under a certain franchise agreement between Assignor and Assignee (the |
| "Franchise Agreement"). |
| C. |
| As a condition to the grant of rights under the Franchise Agreement to Assignor, Assignee requires |
| that Assignor enter into this Agreement. |
| NOW, THEREFORE, for and in consideration of the sum of Five Dollars and other good and valuable |
| consideration, the receipt of which is hereby acknowledged, the parties agree as follows: |
| 1. |
| Assignor hereby assigns all of its right, title and interest in and to the Lease and the FLOYD'S 99 |
| Shop to Assignee. Although it is the intention of the parties that this Agreement is a present assignment, it is expressly |
| understood and agreed that until an event described in Section 2 below has occurred and Assignee has exercised its |
| remedies hereunder, Landlord shall look to Assignor for full performance of Assignor's obligations under the Lease. |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the 'Lease' in the Conditional Assignment of Lease agreement refers to the lease agreement between the landlord and the assignor (tenant) for the property where the Floyds 99 shop will be located. Specifically, the assignor is a tenant of certain property generally known as , located in the City of , State of , pursuant to a lease by and between Landlord and Assignor, dated , 20 (the "Lease").
This lease is a critical component of the franchise agreement because it secures the location for the franchisee's Floyds 99 shop. The Conditional Assignment of Lease ensures that Floyds 99 Franchising, LLC, as the assignee, has certain rights and control over the lease, especially in cases where the franchisee (assignor) defaults on their obligations under the lease or the franchise agreement.
Under the Conditional Assignment of Lease agreement, the assignor assigns all rights, title, and interest in the Lease and the Floyds 99 Shop to Floyds 99 Franchising, LLC. This assignment is conditional and becomes effective upon certain events, such as the assignor's default under the lease or franchise agreement, or discontinuation of the Floyds 99 Shop operation. This agreement protects Floyds 99's interests by allowing them to step in and take over the lease if the franchisee fails to meet their obligations, ensuring the continued operation of the Floyds 99 shop at that location.