What is the relationship between the Franchise Agreement and the Conditional Assignment of Lease for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Conditional Assignment. Additionally, the Franchise Agreement requires that the Lease contain certain
provisions which, to the extent not incorporated into the Lease, are set forth herein.
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.
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- NOTICE TO FRANCHISOR. Prior to the enforcement of any remedies under the Lease, Landlord agrees to provide Franchisor with written notice of Tenant's default under the Lease. Franchisor shall have ten (10) days after such notice to cure monetary defaults and thirty (30) days after such notice to cure non-monetary defaults. Notice to Franchisor shall be addressed as follows:
Floyd's 99 Franchising, LLC Attn: Leasing/Real Estate 7900 E. Berry Place Greenwood Village, CO 80111
Franchisor shall have the right, but not the obligation, to succeed to Tenant's rights upon Tenant's default by taking an assignment of Tenant's interest under this Lease and curing such default.
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.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Franchise Agreement requires that the lease for the premises contain certain provisions. These provisions, if not already in the lease, are included in the Conditional Assignment of Lease.
The landlord consents to the terms of the Conditional Assignment of Lease, allowing Floyds 99 Franchising, LLC, as the Assignee, to sublease the property to any Floyds 99 franchisee without further consent from the landlord. The landlord also agrees that the Assignee has no further obligation under the lease after such assignment, and a replacement Conditional Assignment of Lease Agreement will be created between the Assignee and the new tenant.
Furthermore, the landlord agrees to provide Floyds 99 with written notice of any default by the tenant (franchisee) under the lease, giving Floyds 99 the right, but not the obligation, to take over the tenant's rights by assignment and cure the default. The tenant (franchisee) and landlord also cannot surrender, amend, modify, or terminate the lease without Floyds 99's written consent, protecting Floyds 99's interest in the lease and the franchise operation at that location.
This arrangement ensures that Floyds 99 has certain controls and protections regarding the location of its franchises, including the ability to step in and take over a lease if a franchisee defaults, and to ensure the lease terms support the franchise operation. The franchisee is bound by both the Franchise Agreement and the lease terms, with the Conditional Assignment of Lease acting as a bridge between the two, protecting the franchisor's interests.