Is the Batteries Plus Bulbs Franchisor obligated to cure any default under the lease?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Cure. Either Tenant or Franchisor may cure defaults under the Lease and Landlord will accept performance of obligations due under the Lease, as specified in the Lease, by either Franchisor or Tenant. Franchisor will not, however, be under any obligation to cure any default and nothing herein will require Franchisor at any time to comply with or take any action under the provisions of the Lease.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, while the franchisor has the option to cure defaults under the lease, they are not obligated to do so. The landlord is required to provide Batteries Plus Bulbs with a minimum 30-day notice of any default before terminating the lease or exercising any remedies. During this period, either the franchisee or Batteries Plus Bulbs can cure the default, and the landlord must accept performance of obligations from either party.
However, Batteries Plus Bulbs is not under any obligation to cure any default, and the agreement does not require them to take any action under the lease provisions. If Batteries Plus Bulbs chooses to begin curing a default within the 30-day notice period and diligently completes the cure, they have the option, but not the obligation, to become the tenant under the lease, preventing the landlord from terminating it.
This arrangement provides Batteries Plus Bulbs with the flexibility to protect its brand and franchisee network by stepping in to maintain control of a location if a franchisee is struggling. However, it also means that a franchisee cannot rely on Batteries Plus Bulbs to resolve lease defaults, which could ultimately lead to eviction and business closure if the franchisee is unable to meet their lease obligations.