What is the purpose of the Lease Rider form in the Ledgers Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Use.
Tenant is a franchisee of Franchisor.
The Leased Premises shall be used only for the operation of an Ledgers office (or any name authorized by Franchisor).
Notice of Default and Opportunity To Cure.
Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within 10 days after the expiration of the period in which Tenant may cure the Default.
Termination of Lease.
Landlord shall copy Franchisor on any notice of termination of the Lease.
If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease, subject to Landlord's approval in its reasonable discretion.
To exercise this option, Franchisor must notify Landlord within 10 days after Franchisor receives notice of the termination of the Lease.
Termination of Franchise Agreement.
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.
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 Franchisor's brand, subject to Landlord's approval in its reasonable discretion.
Authorization.
Tenant authorizes Landlord and Franchisor to communicate directly with each other about Tenant and Tenant's business.
Right to Enter.
Upon the expiration or termination the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Franchisor or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises within 10 days of such expiration or termination, to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
LANDLORD Tenant Signature: Name: Title: Date:
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the Lease Rider is designed to protect Ledgers' interests in the event that a franchisee defaults on their lease or the franchise agreement is terminated. The Lease Rider ensures that Ledgers has the option to take over the lease under certain conditions, maintaining continuity of operations and brand presence. This is a fairly common practice in franchising, as it allows the franchisor to maintain control over locations and potentially reassign them to new franchisees.
Specifically, the Lease Rider provides Ledgers with several key rights. If the landlord provides the tenant/franchisee a written notice of default, the landlord must also provide Ledgers a copy of that notice, and Ledgers has the option to cure the default within 10 days after the period in which the tenant may cure the default. If the landlord terminates the lease due to the tenant's default, Ledgers has the option to enter into a new lease with the landlord under the same terms, subject to the landlord's approval. Ledgers must notify the landlord within 10 days after receiving notice of lease termination to exercise this option.
Additionally, if the Franchise Agreement between Ledgers and the tenant is terminated, the tenant must assign the lease to Ledgers upon Ledgers' written request, again subject to the landlord's approval. This assignment must be exercised within 10 days after the termination of the Franchise Agreement. The Lease Rider also allows Ledgers to access the premises to remove signage and materials bearing Ledgers' trademarks upon the expiration or termination of the Franchise Agreement or the lease, provided Ledgers gives reasonable notice and is liable for any damage caused by the removal. The tenant authorizes the landlord and Ledgers to communicate directly with each other about the tenant and the tenant's business.
It is important to note that by signing the Lease Rider, Ledgers does not assume any liability with respect to the leased premises or any obligation as the tenant under the lease. This protects Ledgers from being held responsible for the franchisee's lease obligations. The franchisee authorizes the landlord and Ledgers to communicate directly regarding the franchisee's business.