Can Ledgers assign the Franchise Agreement to another party?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| | The following consideration is given: | | | the execution by Releasor of a successor Franchise Agreement | | | or other renewal | | | documents renewing the franchise (the "Franchise"); or | | | Releasor's consent to Releasee's transfer of its rights and duties under the | | | Franchise Agreement; or | | | Releasor's consent to Releasee's assumption of rights and duties under the | | | Franchise Agreement; or |
If the Franchise Agreement between Franchisor and Tenant is terminated during the term of the Lease, then upon the written request of Franchisor, Tenant shall assign the Lease to Franchisor, provided that any such proposed assignment shall be subject to Landlord's approval in its reasonable discretion and must be exercised within 10 days after termination of the Franchise Agreement.
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 Franchisor's brand, subject to Landlord's approval in its reasonable discretion.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the franchisee may be required to consent to Ledgers's transfer of rights and duties under the Franchise Agreement. Specifically, Exhibit 6 references a release given by the franchisee ('Releasor') in connection with Ledgers ('Releasee') transfer of its rights and duties under the Franchise Agreement.
Additionally, in the event that the Franchise Agreement between Ledgers and the tenant (franchisee) is terminated during the term of the lease, upon Ledgers's written request, the tenant must assign the lease to Ledgers. This assignment is subject to the landlord's approval, which must be exercised within 10 days after the termination of the Franchise Agreement.
Furthermore, Ledgers has the right to assign or sublease its lease to a new Ledgers franchisee, contingent upon the landlord's approval. This indicates that Ledgers can transfer its rights and obligations under the lease agreement to another franchisee, subject to the landlord's consent.