What happens if the Franchise Agreement between Fly To Fit and the tenant is terminated?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
iod in which Tenant may cure the Default.
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- Termination of Lease. Landlord shall copy Franchisor on any notice of termination of the Lease. If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease. To exercise this option, Franchisor must notify Landlord within 15 days after Franchisor receives notice of the termination of the Lease.
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- Termination of Franchise Agreement. If the Franchise Agreement between Franchisor and Tenant is terminated during the term of the Lease, then upon the written request of Franchisor, Tenant shall assign the Lease to Franchisor. Landlord hereby consents to the assignment of the Lease to Franchisor.
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- Assignment and Subletting.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if the Franchise Agreement between Fly To Fit and the tenant (franchisee) is terminated during the term of the lease, Fly To Fit has specific rights regarding the lease agreement. Upon Fly To Fit's written request, the tenant is required to assign the lease to Fly To Fit. The landlord consents to this assignment. This provision ensures that Fly To Fit can maintain control over the location even if the franchisee's agreement is terminated.
This clause protects Fly To Fit's interests by allowing them to take over the lease and continue operating a Fly To Fit business at that location, either directly or through another franchisee. This is particularly important for maintaining brand presence and minimizing disruption to the business. The franchisee is obligated to comply with Fly To Fit's request to assign the lease, ensuring a smooth transition.
Furthermore, the FDD states that upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Fly To Fit or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Fly To Fit's brand name, trademarks, and commercial symbols, provided that Fly To Fit will be liable to Landlord for any damage Fly To Fit or its designee causes by such removal. This ensures that Fly To Fit can remove its branding from the location if the franchise agreement or lease is terminated.