In the context of the Collateral Assignment of Lease for Hck Hot Chicken, what is the definition of 'Assignor'?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR VALUE RECEIVED, as of the date signed below ("Effective Date"), the undersigned, [ASSIGNOR] ("Assignor") hereby assigns, transfers and sets over unto [ASSIGNEE] ("Assignee") all of Assignor's right, title, and interest as tenant, in, to and under that certain lease, a copy of which is attached hereto as Exhibit A ("Lease") with respect to the premises located at [BUSINESS ADDRESS]. This Collateral Assignment of Lease ("Assignment") is for collateral purposes only and except as specified herein, Assignee shall have no liability or obligation of any kind whatsoever arising from or in connection with this Assignment unless Assignee expressly assume the obligations of Assignor thereunder.
Assignor represents and warrants to Assignee that it has full power and authority to so assign the Lease and its interest therein, and that Assignor has not previously, and is not obligated to, assign or transfer any of its interest in the Lease or the premises demised thereby.
Upon a default by Assignor under the Lease or under that certain franchise agreement for a franchise between Assignee and Assignor ("Franchise Agreement"), or in the event of a default by Assignor under any document or instrument securing the Franchise Agreement, Assignee shall have the right and is hereby empowered, in Assignee's sole discretion, to: (i) cure Assignor's default of the Lease; take possession of the premises demised by the Lease; (iii) expel Assignor from the premises, either temporarily or permanently; (iv) terminate Assignee's rights, title, and interest in the Lease; and/or (v) assume the Lease. If Assignee expends sums to cure a default of the Lease, Assignor shall promptly reimburse Assignee for the cost incurred by Assignee in connection with such performance, together with interest thereon at the rate of two percent (2%) per month, or the highest rate allowed by law.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, in the Collateral Assignment of Lease, the 'Assignor' is defined as the undersigned in the document. The document also states that the Assignor assigns, transfers, and sets over to the Assignee all of the Assignor's right, title, and interest as tenant in the lease. The lease pertains to the premises located at the specified business address.
This assignment is solely for collateral purposes, meaning the Assignee (likely the franchisor or a related entity) is taking an interest in the lease as security. The Assignee has no liability or obligation unless they expressly assume the obligations of the Assignor (the franchisee) under the lease. The Assignor (franchisee) warrants that they have the full power and authority to assign the lease and that they have not previously assigned or transferred any interest in it.
In the event of a default by the Assignor (franchisee) under the lease, the franchise agreement, or any document securing the franchise agreement, the Assignee has the right to cure the default, take possession of the premises, expel the Assignor, terminate the Assignor's rights in the lease, and/or assume the lease. If the Assignee expends funds to cure a default, the Assignor must reimburse the Assignee for these costs, along with interest at a rate of two percent (2%) per month, or the highest rate allowed by law.