Under the Ledgers Lease Rider, what is the condition for Ledgers to assign or sublease its lease to a franchisee?

According to the 2025 Ledgers Franchise Disclosure Document, if Ledgers becomes the lessee of a leased premise, Ledgers has the right to assign or sublease the lease to one of its franchisees. This is subject to the landlord's approval in its reasonable discretion.

This clause in the lease rider provides Ledgers with flexibility in managing its real estate portfolio and supporting its franchisees. For a prospective franchisee, this could mean an opportunity to take over an existing, potentially well-located, lease from Ledgers, which could reduce the upfront costs and time associated with finding and securing a new location.

However, the assignment or sublease is not guaranteed, as it depends on the landlord's approval. The landlord's discretion could be influenced by factors such as the franchisee's financial stability, business experience, or the landlord's overall impression of the franchisee. A prospective franchisee should inquire about the criteria Ledgers and the landlords typically use in evaluating potential assignees or sublessees to better assess the likelihood of securing a lease through this mechanism.

It's important to note that the original tenant remains liable under the lease, even if Ledgers assigns or sublets the lease to a franchisee. This could have implications for the original tenant's financial obligations and should be carefully considered when entering into a lease agreement with this clause.