Does Afuri Ramen Dumpling have the option to cure a franchisee's breaches, and if so, who bears the expense?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Landlord will give written notice to Franchisor (concurrently with the giving of notice to Tenant) of any breach by Tenant under the Lease Agreement. Franchisor will have the right (but not obligation), in Franchisor's sole discretion, to cure any breach at Tenant's expense within 15 business days after the expiration of the period in which Tenant had to cure the default.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the landlord of the franchise premises must provide written notice to Afuri Ramen Dumpling of any breach by the tenant (franchisee) under the lease agreement. Afuri Ramen Dumpling then has the right, but not the obligation, to cure any such breach.
If Afuri Ramen Dumpling chooses to cure a breach, it will do so at the franchisee's expense. This means the franchisee is responsible for covering the costs Afuri Ramen Dumpling incurs while resolving the breach.
This clause is included in the agreement to protect Afuri Ramen Dumpling's interest in maintaining consistent brand standards and operational integrity. By having the option to cure a franchisee's breach of the lease agreement, Afuri Ramen Dumpling can prevent potential damage to its reputation and ensure the continued smooth operation of the franchise location. The franchisee bears the expense, incentivizing them to adhere to the lease terms and avoid breaches.