Under what condition will the Assignee of Fly Fitness have no further liability 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 | |
| (d) | no further liability or obligation under the Lease as assignee, tenant or otherwise. | Agrees that Assignee may 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 and upon such assignment Assignee shall have |
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Assignee, Fly Fitness Franchise, L.L.C., will have no further liability or obligation under the lease as assignee, tenant, or otherwise under specific conditions. This occurs when the Assignee further assigns the lease to another party. This new party must agree to assume the tenant's obligations under the lease and be reasonably acceptable to the landlord.
This provision protects Fly Fitness Franchise, L.L.C. from long-term lease obligations if they choose to transfer the lease to a new franchisee or another entity. For a prospective Fly Fitness franchisee, this means that if Fly Fitness Franchise, L.L.C. ever takes over the lease of their franchise location due to a default or other issue, Fly Fitness can reassign the lease to someone else, relieving themselves of further responsibility.
It is important for a potential franchisee to understand the conditions under which Fly Fitness can assign the lease and what criteria the new tenant must meet to be acceptable to the landlord. This clause ensures that Fly Fitness is not indefinitely tied to the lease, providing them with flexibility in managing franchise locations and mitigating potential liabilities.