Under the Ledgers Lease Rider, what is the condition for the Landlord's approval in its reasonable discretion?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the Landlord's approval in its reasonable discretion is a condition in several instances within the Lease Rider.
First, 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 and conditions as the terminated lease. However, this is subject to the Landlord's approval in its reasonable discretion. To exercise this option, Ledgers must notify the Landlord within 10 days after receiving notice of the lease termination.
Second, if the Franchise Agreement between Ledgers and the tenant is terminated during the lease term, the tenant must assign the lease to Ledgers upon Ledgers' written request. This assignment is also subject to the Landlord's approval in its reasonable discretion and must be exercised within 10 days after the termination of the Franchise Agreement.
Finally, if Ledgers becomes the lessee of the leased premises, Ledgers has the right to assign or sublease the lease to another Ledgers franchisee. This assignment or sublease is also subject to the Landlord's approval in its reasonable discretion.