Under what conditions can the My Salon Suite franchisor accept the assignment of the lease?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Acceptance of Assignment by Franchisor. Subject to complying with the requirements of this Section, Franchisor may accept the assignment of the Lease by giving written notice of acceptance to Landlord at any time before the Lease terminates or expires if: (i) Franchisor terminates the Franchise Agreement for any reason; (ii) Tenant loses the right to occupy the Premises due to Tenant's breach or default or for any other reason except the expiration of the Lease or condemnation or destruction of the Premises on the terms stated in the Lease. 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.
- H. Landlord's Agreements. In addition to agreements stated elsewhere in this Addendum, for the benefit of Franchisor, Landlord agrees not to accept Tenant's voluntary surrender of the Lease without giving Franchisor prior written notice and a period of no less than ten (10) days in which to accept an assignment of the Lease pursuant to the requirements of this Addendum. Additionally, Landlord agrees not to amend the Lease without Franchisor's prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the franchisor can accept the assignment of the lease under specific conditions. My Salon Suite may accept the assignment of the lease by providing written notice to the landlord before the lease terminates or expires if the franchise agreement is terminated for any reason, or if the tenant loses the right to occupy the premises due to breach, default, or any reason other than the lease's expiration, condemnation, or destruction of the premises.
If My Salon Suite accepts the assignment by giving timely written notice to both the franchisee and the landlord, the franchisor assumes all rights of the tenant under the lease. This includes the right to assign or sublet the lease to another franchised business owner without the landlord's prior consent. However, My Salon Suite is only liable for obligations arising from the date of acceptance, except for curing any outstanding defaults committed by the tenant before the assignment. Any options to extend the lease term automatically transfer to My Salon Suite as the assignee.
Following the acceptance of the lease assignment, both parties are expected to cooperate to ensure a smooth transition of the leasehold interest to My Salon Suite, minimizing any disruption to the customers of the franchised business. Additionally, the landlord agrees not to accept the tenant's voluntary surrender of the lease without providing My Salon Suite with prior written notice and a period of no less than ten days to accept the assignment.