If Fly To Fit becomes the lessee, to whom can Fly To Fit assign or sublease the lease?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Assignment and Subletting. Notwithstanding any provision of the Lease to the contrary, Tenant shall have the right to assign or sublet the Lease to Franchisor, provided that no such assignment or sublease shall relieve Tenant or any guarantor of liability under the Lease. If Franchisor becomes the lessee of the Leased Premises, then Franchisor shall have the right to assign or sublease its lease to a franchisee of the Fly To Fit brand. Any provision of the Lease which limits Tenant's right to own or operate other Fly To Fit outlets in proximity to the Leased Premises shall not apply to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if Fly To Fit becomes the lessee of the leased premises, it has the right to assign or sublease the lease to another Fly To Fit franchisee.
This provision is beneficial for a franchisee because it provides Fly To Fit with flexibility in managing its real estate portfolio. If a franchisee's business fails or if Fly To Fit needs to relocate a successful franchisee, Fly To Fit can step in as the lessee and then assign or sublease the property to another franchisee within the system. This ensures continuity of the Fly To Fit brand and minimizes potential losses for both Fly To Fit and the landlord.
It is important to note that the original franchisee remains liable under the lease even if they assign or sublet it to Fly To Fit. This clause protects the landlord's interests by ensuring that there is always a party responsible for fulfilling the lease obligations. This is a fairly standard practice in franchising, as franchisors often want the ability to control the location of their franchisees, but also want to ensure that the landlord is protected.