What is the 'Assignee' defined as in the Collateral Assignment of Lease for a Mrcool franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| For Value Received, the undersigned ("Assignor") hereby assigns and transfers to MRCOOL Franchising, |
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| LLC ("Assignee"), all of Assignor's right, title and interest as tenant in, to and under a certain lease, a copy |
| of which is attached hereto as $\underline{\text{Exhibit A}}$ (the "Lease") for the following premises (the "Leased Premises"): |
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, in the context of the Collateral Assignment of Lease, the 'Assignee' is defined as MRCOOL Franchising, LLC. This assignment involves the transfer of the franchisee's rights and interests as a tenant under a lease to Mrcool Franchising, LLC. This is a standard practice in franchising where the franchisor seeks to protect its interests in the location of the franchise.
This arrangement allows Mrcool, as the 'Assignee', to have certain rights regarding the leased premises. Specifically, it gives Mrcool the ability to take over the lease if the franchisee defaults on their obligations under the lease agreement or the franchise agreement. This protects Mrcool's investment in the franchise location and ensures business continuity.
For a prospective Mrcool franchisee, this means that the lease for their business location is subject to a Collateral Assignment of Lease in favor of Mrcool Franchising, LLC. It is important for the franchisee to understand the terms of this assignment, particularly the conditions under which Mrcool can take over the lease. This includes defaults on the lease itself or the franchise agreement. The franchisee should carefully review the lease agreement and the Collateral Assignment of Lease to fully understand their rights and obligations.