What must the Assignee of Fly Fitness confirm to the Landlord to be recognized as tenant under the Lease?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| to that Conditional Assignment of Lease from | (Assignor) to | ||
|---|---|---|---|
| Fly Fitness Franchise, L.L.C. (Assignee) dated The undersigned Landlord under the aforedescribed Lease further hereby: | for the property known as | ||
| (a) | default by Assignor under the Lease; | Agrees to notify Assignee in writing of and upon the failure of Assignor to cure any | |
| (b) | notice thereof in accordance with paragraph (a) above; | Agrees that Assignee shall have the right, but shall not be obligated, to cure any default by Assignor under the Lease within 30 days after delivery by Landlord of | |
| (c) | Assignee period the non-monetary defaults, if any, of Assignor under the Lease; | Consents to the foregoing Conditional Assignment and agrees that if Assignee takes possession of the Premises demised by the Lease and confirms to Landlord the assumption of the Lease by Assignee as tenant thereunder, Landlord shall recognize as tenant under the Lease, provided that Assignee cures within the 30-day |
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if the Assignee takes possession of the premises, they must confirm to the Landlord the assumption of the lease by the Assignee as the tenant. Additionally, the Assignee must cure any non-monetary defaults of the Assignor under the lease within a 30-day period. If these conditions are met, the Landlord will recognize the Assignee as the tenant under the lease.
This provision is part of a Conditional Assignment of Lease agreement, which outlines the terms under which Fly Fitness Franchise, L.L.C. (as Assignee) can take over the lease from the franchisee (as Assignor) in certain situations, such as a default by the franchisee. This agreement ensures that Fly Fitness has a mechanism to maintain control over the location of a franchise if the franchisee fails to meet their obligations.
For a prospective Fly Fitness franchisee, this means that in the event Fly Fitness needs to take over the lease due to the franchisee's default, the franchisee must ensure that all non-monetary defaults are cured within 30 days to be recognized as the tenant. This could include issues such as failure to maintain the premises or comply with operational standards. The franchisee should carefully review the lease agreement and understand what constitutes a default and how to cure it to avoid potential issues with the landlord and Fly Fitness.