What is the significance of the Property's location in the Conditional Assignment of Lease for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ther with interest thereon at the rate of two percent per month, or the highest rate allowed by law. Nothing in this Agreement shall obligate Assignee to cure any such default, unless Assignee elects to assume the Lease pursuant to Section 5 below. For purposes of clarification, the parties agree that Assignee shall have the right to cure Assignor's defaults under the Lease without electing to assume the Lease pursuant to Section 5 below.
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- The date upon which the assignment shall be effective (the "Effective Date"), is the date upon which Landlord and Assignor receive written notice from Assignee that:
- a. Assignee will cure all prior defaults of Assignor in the Lease in which Landlord has given notice to Assignee pursuant to the provisions of Section 3 above, and that Assignee will assume the Lease; or
- b. The events described in either subsections 2(b), 2(c), 2(d) or 2(f) above have occurred and that Assignee will assume the Lease.
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- As of the Effective Date, Assignee will assume all rights, duties, responsibilities and obligations of Assignor arising on or after the Effective Date pursuant to the terms and provisions of the Lease.
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- 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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- Assignor agrees to indemnify and hold harmless Assignee from any loss, liability, cost or expense incurred or suffered by Assignee under this Agreement.
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- 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)
Based on the 2025 Floyds 99 Franchise Disclosure Document, the location of the property is significant in the Conditional Assignment of Lease because the landlord consents to the terms and provisions of the agreement and to the conditional assignment of the lease to the assignee. The landlord agrees that after the effective date, the assignee may enter into a sublease with any Floyds 99 franchisee without the landlord's further consent, or further assign the lease to a person, firm, or corporation who agrees to assume the tenant's obligations under the lease and who is reasonably acceptable to the landlord.
Furthermore, upon any such assignment, the assignee has no further liability or obligation under the lease, and the landlord will enter into a replacement Conditional Assignment of Lease Agreement between the assignee and the new tenant. The assignor agrees to indemnify and hold harmless the assignee from any loss, liability, cost, or expense incurred or suffered by the assignee under this agreement. The assignor and landlord agree not to allow any surrender, amendment, modification, termination, or other assignment of the lease without the prior written consent of the assignee.
Throughout the term of the lease, the assignor agrees to 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 the assignee otherwise agrees in writing. The assignor grants to the assignee a power of attorney to exercise an extension or renewal option for the lease in the name, place, and stead of the assignor, and the landlord agrees to accept the assignee's exercise of such option. The assignor represents and warrants to the assignee that it has the full power and authority to assign the lease and its interests therein and that the assignor has not previously assigned, transferred, or pledged, and is not otherwise obligated to assign, transfer, or pledge, any of its interests in the lease or the leasehold estate created thereby. The assignee has the right to assign any of its rights, duties, or obligations under this agreement to an affiliate or designee of the assignee.