Under what condition will Fly Fitness have no further liability or obligation under the lease as assignee?
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, Fly Fitness, as the assignee of a lease, will have no further liability or obligation under the lease under specific conditions. This occurs when Fly Fitness assigns the lease to another party who agrees to assume the tenant's obligations under the lease and is reasonably acceptable to the landlord.
This provision protects Fly Fitness from long-term lease obligations if they decide to transfer the franchise to a new franchisee or otherwise exit the location. It ensures that Fly Fitness can assign the lease to a suitable replacement tenant, relieving them of ongoing responsibilities.
For a prospective Fly Fitness franchisee, this clause offers some assurance that Fly Fitness will not remain liable for the lease if the franchisee defaults and Fly Fitness needs to take over the premises. However, the new tenant must be reasonably acceptable to the landlord, which introduces a degree of uncertainty. It is important for franchisees to understand the conditions under which Fly Fitness can assign the lease and the potential implications for both parties.