Is the All States M.E.D. franchisor obligated to cure any default under the lease if the tenant fails to do so?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Phone Number: | | |
| Franchisor | All States M.E.D. Franchising, LLC |
|---|---|
| Name: | |
| Franchisor | 6157 NW 167th Street, Suite F15 |
| Address: | Miami Lakes, FL 33015 |
| Franchisor Phone Number: | 877-255-1699 |
| Tenant | |
| ----------------------------- | -- |
| Tenant Name: | |
| Address of Leased Premises: | |
| Date of Lease: |
-
- Use. Tenant is a franchisee of Franchisor. The Leased Premises shall be used only for the operation of an All States M.E.D. business (or any name authorized by Franchisor).
-
- Notice of Default and Opportunity To Cure. Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within 10 days after the expiration of the period in which Tenant may cure the Default.
-
- Termination of Lease. Landlord shall copy Franchisor on any notice of termination of the Lease.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchisor is not obligated to cure any default under the lease if the tenant fails to do so. The lease addendum states that the landlord must provide All States M.E.D. with copies of any default notices given to the tenant (the franchisee). All States M.E.D. then has the option, but not the obligation, to cure the default if the franchisee fails to do so within 10 days after the franchisee's cure period expires.
This arrangement provides All States M.E.D. with a degree of control over the leased premises. If a franchisee is in default, All States M.E.D. can step in to cure the default and protect its brand and the location. However, it is important to note that All States M.E.D. is not required to do so, which limits their financial exposure. This clause protects the landlord, the franchisee, and the franchisor.
Furthermore, if the landlord terminates the lease due to the franchisee's default, All States M.E.D. has the option to enter into a new lease with the landlord on the same terms and conditions as the original lease, subject to the landlord's approval. To exercise this option, All States M.E.D. must notify the landlord within 10 days after receiving notice of the lease termination. Also, by executing the addendum, All States M.E.D. does not assume any liability with respect to the leased premises or any obligation as the tenant under the lease.