What is the 'Lease' referring to in the context of the Floyds 99 Conditional Assignment of Lease?
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. |
| 2. |
| With the exception of Sections 3, 4, 8, 9, 10, 11, 12 and 13 below which are effective as of the date |
| this Agreement is fully executed by the parties, the assignment of Lease contemplated hereunder is conditional and |
| shall not be effective until the "Effective Date," as defined in Section 5 of this Agreement. Assignee shall have no |
| right to pursue any remedy hereunder unless and until: |
| a. |
| Default by Assignor under the terms of the Lease, which default (i) is not cured by Assignor |
| within the time limits provided therein or (ii) results in a demand for performance under any guaranty of the Lease; |
| b. |
| Default by Assignor under the terms of the Franchise Agreement or under any document or |
| instrument securing the Franchise Agreement, which default is not cured by Assignor within the time limits provided |
| therein; |
| c. |
| Voluntary institution of any insolvency or bankruptcy proceedings as a debtor or insolvent |
| on the part of Assignor (or any guarantor of the Lease) or involuntary insolvency or bankruptcy proceedings brought |
| against Assignor (or any guarantor of the Lease) which are not dismissed within 60 days of the filing thereof; |
| d. |
| Discontinuation by the Assignor of operation of a FLOYD'S 99 Shop on the Property, |
| whether voluntarily or involuntarily; |
| e. |
| Nonrenewal by Assignor of the Franchise Agreement; or |
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 refers to the agreement between the landlord and the tenant (Assignor) for the property where the Floyds 99 shop will be located. The Conditional Assignment of Lease is an agreement among the landlord, the franchisee (Assignor/Tenant), and Floyds 99 Franchising, LLC (Assignee).
The purpose of this agreement is to conditionally assign the franchisee's rights and interests in the lease to Floyds 99 Franchising, LLC. This assignment becomes effective under specific conditions, such as the franchisee defaulting on the lease or franchise agreement, becoming insolvent, discontinuing operations, or not renewing the franchise agreement. Until such an event occurs, the landlord will continue to look to the franchisee for fulfilling the obligations under the lease.
This arrangement provides Floyds 99 with a mechanism to protect its interests and ensure the continued operation of the franchise at the location. It allows Floyds 99 to step in and take over the lease if the franchisee fails to meet their obligations, thereby maintaining control over the location and potentially re-franchising it to another operator. The landlord, in turn, agrees to this conditional assignment as part of the overall agreement, understanding that Floyds 99 may assume the lease under certain circumstances.