What rights does the assignee or subtenant retain in the lease for a Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of any assignment or purported assignment under this Addendum, Tenant shall remain liable under the terms of the Lease and the assignee or subtenant shall retain all of the Tenant's rights granted in the Lease including without limitation: (x) any grant of a protected territory or use exclusivity; and (y) the renewal or extension of the Lease term.
With respect to any assignment proposed or consummated under this Addendum, Landlord hereby waives any rights it may have to: (A) recapture the Premises; (B) terminate the Lease; or (C) modify any terms or conditions of the Lease.
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to the 2025 FDD, in the event of an assignment or purported assignment under the Lease Addendum, the assignee or subtenant in a Hck Hot Chicken franchise retains all of the tenant's rights granted in the lease. These rights include any grant of a protected territory or use exclusivity, as well as the right to renew or extend the lease term.
This means that if a Hck Hot Chicken franchisee sells or subleases their location to another party, that new party will inherit the original franchisee's rights under the lease agreement. This is a significant benefit for the assignee or subtenant, as it ensures that they will have the same protections and opportunities as the original franchisee. For example, if the original franchisee had a protected territory, the assignee or subtenant will also have that protected territory. Similarly, if the original franchisee had the right to renew the lease, the assignee or subtenant will also have that right.
It's important to note that this provision is subject to the terms of the Lease Addendum and the underlying lease agreement. Prospective Hck Hot Chicken franchisees should carefully review these documents to understand the full extent of their rights and obligations. Additionally, the landlord waives any rights to recapture the premises, terminate the lease, or modify any terms or conditions of the lease in the event of an assignment.