Can a Ledgers tenant assign or sublet the lease to the franchisor?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a tenant, who is also a franchisee, has the right to assign or sublet their lease to Ledgers, the franchisor. However, this assignment or sublease does not relieve the tenant or any guarantor of their liability under the lease.
Furthermore, if Ledgers becomes the lessee of the leased premises, they have the right to assign or sublease the lease to another Ledgers franchisee. This is subject to the landlord's approval, which must be given at their reasonable discretion.
This clause provides Ledgers franchisees with a degree of flexibility in managing their lease obligations, particularly if they need to exit the location. It also gives Ledgers the option to maintain control over the premises by subletting to another franchisee, ensuring business continuity and brand consistency.