factual

Can a Fly To Fit tenant assign or sublet the lease to Fly To Fit Franchise, LLC?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

    1. 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 the 2024 Fly To Fit Franchise Disclosure Document, a tenant (franchisee) has the right to assign or sublet their lease to Fly To Fit Franchise, LLC. However, this assignment or sublease does not relieve the tenant or any guarantor of their liability under the lease. This means that even if the lease is assigned or sublet to Fly To Fit, the original franchisee remains responsible for fulfilling the lease obligations.

Furthermore, if Fly To Fit becomes the lessee of the premises, they have the right to assign or sublease the lease to another Fly To Fit franchisee. This provides Fly To Fit with flexibility in managing the location and ensuring continued operation under the Fly To Fit brand. Additionally, any provision in the lease that limits the tenant's right to own or operate other Fly To Fit outlets in proximity to the leased premises does not apply to Fly To Fit itself.

This arrangement benefits Fly To Fit by allowing them to take over a lease if a franchisee defaults or leaves the system, ensuring business continuity. It also benefits potential new franchisees by providing them with pre-approved locations. However, the original franchisee remains liable even after assignment, which is a significant consideration for them.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.