What right does Auntie Annes require in the lease regarding notice of default?

According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes requires that franchisees make commercially reasonable efforts to ensure that all leases include a provision requiring the landlord to provide Auntie Annes with a copy of any written notice of breach or default sent to the franchisee. This allows Auntie Annes to stay informed about any potential issues with the lease and the franchisee's compliance.

Additionally, Auntie Annes requires the right (but not the obligation) to cure any defaults under the lease within a reasonable time. The FDD specifies that this cure period should not exceed 15 days for monetary defaults (e.g., failure to pay rent) and 30 days for non-monetary defaults (e.g., failure to maintain the premises). This provision protects Auntie Annes's interest in maintaining the franchise location and brand standards by giving them the option to step in and resolve any issues that could lead to a lease termination.

These requirements are fairly common in franchising, as they allow the franchisor to protect their brand and ensure the continued operation of the franchise. By receiving notice of default and having the right to cure, Auntie Annes can work with the franchisee or landlord to resolve any issues and prevent the closure of the location. This can be a significant benefit for both Auntie Annes and the franchisee, as it provides an additional layer of security and support.