Under what conditions can the Assignee further assign the lease for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the landlord agrees that the Assignee can further assign the lease under specific conditions. The Assignee can assign the lease to a person, firm, or corporation that agrees to assume the tenant's obligations under the lease. This new tenant must also be reasonably acceptable to the landlord.
Upon such an assignment, the Assignee is released from any further liability or obligation under the lease. Simultaneously with the assignment, the landlord will enter into a replacement Conditional Assignment of Lease Agreement between the Assignee and the new tenant.
This arrangement benefits the Floyds 99 franchisee by providing flexibility in transferring the lease to another party, subject to the landlord's approval of the new tenant. It also clarifies the responsibilities of each party involved in the assignment process, ensuring a smooth transition and release of liability for the Assignee.