What are the parties required to do after My Salon Suite franchisor accepts an assignment of the lease?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor accepts the assignment by giving timely written notice to both Franchisee and Landlord, the parties agree that from and after the date of Franchisor's written notice of acceptance: (i) Franchisor shall have all of the rights of Tenant under the Lease; (ii) Franchisor shall have the right to assign or sublet all of any part of its interest in the Lease or in the Premises to another Franchised Business owner without Landlord's prior consent; and (iii) Franchisor shall be liable to perform only the obligations of Tenant under the Lease arising from and after the date of Franchisor's acceptance of the assignment and shall have no liability for obligations arising before Franchisor's acceptance of the assignment (except for the duty to cure any defaults committed by Tenant which are outstanding on the date of Franchisor's notice of acceptance of assignment). Any options to extend the term of the Lease shall automatically transfer to Franchisor as an assignee of Tenant's rights under the Lease. If Franchisor accepts an assignment of the Lease, the parties shall thereafter cooperate and work together to achieve an orderly transition of Tenant's leasehold interest to Franchisor with minimal disruption to the service of customers of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, if the franchisor accepts the assignment of a lease, both parties, meaning the franchisee (Tenant) and franchisor, must cooperate to ensure a smooth transition of the leasehold interest from the franchisee to My Salon Suite. This cooperation aims to minimize any disruptions to the services provided to customers of the franchised business.
Specifically, once My Salon Suite provides written notice of acceptance to both the franchisee and the landlord, several conditions take effect. My Salon Suite assumes all rights of the franchisee under the lease. My Salon Suite also gains the right to assign or sublet its interest in the lease or premises to another franchised business owner without needing the landlord's prior consent.
Furthermore, My Salon Suite becomes liable for performing the franchisee's obligations under the lease from the date of acceptance forward, but is not liable for obligations arising before the acceptance date, except for curing any outstanding defaults committed by the franchisee at the time of acceptance. Any options to extend the lease term automatically transfer to My Salon Suite as the assignee. This ensures My Salon Suite has control over the lease and can continue operations or transfer the location to another franchisee without landlord interference.