What is the role of the Landlord in the Collateral Assignment of Lease agreement for a Kitchen Solvers franchise?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS COLLATERAL ASSIGNMENT OF LEASE is made as of the last date below written by and among ("Tenant"), KS LA CROSSE INVESTMENTS, LLC ("Franchisor"), and ("Landlord").
WHEREAS, Tenant is the tenant under a certain lease (or sublease), dated (the "Lease"), wherein Landlord leased to Tenant certain premises at (the "Premises"); and WHEREAS, Tenant and have, or will, enter into a Franchise Agreement (the "Franchise Agreement"), whereby will grant to Tenant the right to open and operate a KITCHEN SOLVERS® franchised business under Franchisor's system at the Premises; and WHEREAS, as a condition to entering into the Franchise Agreement, has required that Tenant assign its right, and interest in the Lease, with the right to reassign (as provided therein), as security for Tenant's obligations and Franchisor's rights under the Franchise Agreement; and WHEREAS, in order to induce to enter into the Franchise Agreement, Tenant has agreed to assign its right, and interest in the Lease, with the right to reassign (as provided therein), as security for Tenant's obligations and Franchisor's rights under the Franchise Agreement.
NOW THEREFORE, in consideration for the foregoing premises and the mutual promises contained herein and in the Franchise Agreement, and in order to secure Tenant's obligations and Franchisor'srights under the Franchise Agreement, Tenant does hereby collaterally assign, transfer and set over unto Franchisor, with the right to reassign (as provided herein), all of its right, and interest in and to the Lease and in and to the Premises; it being nevertheless expressly understood and agreed that this assignment is made and is consented to the Landlord contingent upon the following terms, covenants, limitations and conditions: Tenant's Right to Possession.
Tenant shall retain right to possession of the 1.
Premises in accordance with the terms and conditions of the Lease until the occurrence of an Assignment Event (as defined in paragraph 2 of this Agreement).
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the Landlord is a party to the Collateral Assignment of Lease agreement. The agreement involves the Tenant (the franchisee), KS LA CROSSE INVESTMENTS, LLC (the Franchisor), and the Landlord. The agreement is contingent upon the Landlord's consent to the terms outlined within it.
The Collateral Assignment of Lease is used when the franchisee is leasing the premises from which they will operate their Kitchen Solvers business. As a condition of entering into the Franchise Agreement, Kitchen Solvers requires the franchisee to assign their rights and interest in the lease to Kitchen Solvers as security for the franchisee's obligations and Kitchen Solvers' rights under the Franchise Agreement.
The Landlord's role is primarily to acknowledge and consent to this assignment. The agreement specifies that the assignment is made and consented to by the Landlord, contingent upon the terms, covenants, limitations, and conditions detailed in the agreement. This ensures that all parties are aware of and agree to the arrangement where the lease is used as collateral. The franchisee retains the right to possess the premises according to the lease terms until an 'Assignment Event' occurs, as defined in the agreement.