Under the Ledgers Lease Rider, what is the deadline for the Tenant to assign the Lease to Franchisor?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if the Franchise Agreement between Ledgers and the tenant is terminated, the tenant must assign the lease to Ledgers within 10 days of the termination, provided Ledgers requests it in writing. This assignment is subject to the landlord's approval, which must be given at their reasonable discretion.
This clause in the Lease Rider protects Ledgers by giving them control over the location if the franchisee's agreement is terminated. It allows Ledgers to maintain a presence in that market without interruption. The landlord's approval is required, meaning the landlord has the final say on whether the lease can be assigned to Ledgers.
For a prospective Ledgers franchisee, this means that upon termination of their franchise agreement, they may be required to assign their lease to Ledgers. They must act quickly, within 10 days, if Ledgers requests the assignment. The franchisee should also be aware that even if Ledgers requests the lease, the landlord must still approve the assignment.
It is important for a potential Ledgers franchisee to understand the conditions under which the lease can be assigned and the implications of such an assignment. They should discuss this clause with a legal professional to fully understand their rights and obligations.