What right does the Beef O Bradys franchisor have regarding defaults under the lease?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord will give written notice to Franchisor (concurrently with the giving of such notice to Tenant) of any defaults (each, a "Default") by Tenant under the Lease by certified mail, return receipt requested, or by nationally recognized overnight courier service, at the following address or to such other address as Franchisor may provide to Landlord from time to time: Jean Baudrand, 5660 West Cypress Street, Suite A, Tampa, FL 33607 (the "Notice"). The Notice to Franchisor shall be a prerequisite for Landlord's exercise of any remedies resulting from a Default. If Tenant fails to cure such Default, the Notice will grant Franchisor the right, but not the obligation, to cure such Default within 15 business days after the expiration of Tenant's cure period under the Lease. Franchisor's election to cure such Default shall not be deemed an election to assume the Lease, unless and until Franchisor expressly does so in writing. If Franchisor cures a Default and wishes to assume the Lease, upon written notice by Franchisor or its designee to Landlord (the "Lease Default Assumption Notice"): (i) Franchisor or another franchisee, licensee, joint venture partner or other designee of Franchisor will become the lessee of the Premises and will be liable for all obligations under the Lease arising after the date of the Lease Default Assumption Notice, and (ii) Landlord will recognize
or to such other address as Franchisor will provide to Landlord. Franchisor will have 10 business days after receipt of such notice to cure any default resulting from the failure to pay any rental or other sums due under the Lease, and 20 business days after receipt of such notice to cure all other defaults or, if such default is one that requires more than 20 business days to cure, Franchisor will have such additional time as is reasonably necessary to cure the default so long as Franchisor diligently pursues the cure. Landlord will not have the right to exercise any rights or remedies provided by the Lease or otherwise available until such time as notice is given to Franchisor, and the Franchisor's cure period has expired.
The Lease may not be modified, amended canceled or terminated without Franchisor's advance written consent, which Franchisor may not unreasonably withhold. Landlord will promptly provide Franchisor with copies of all proposed modifications, amendments, cancellations or terminations and true and correct copies of the executed modifications, amendments, cancellations or terminations.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys FDD, the franchisor has certain rights and options regarding defaults under the lease agreement for the franchisee's restaurant location. The landlord must provide written notice to Beef O Bradys concurrently with the notice to the franchisee of any defaults by the franchisee under the lease. This notice is a prerequisite for the landlord to exercise any remedies resulting from a default. If the franchisee fails to cure the default, Beef O Bradys has the right, but not the obligation, to cure the default within 15 business days after the franchisee's cure period expires.
If Beef O Bradys chooses to cure a default, it can then provide written notice to the landlord, which is referred to as the "Lease Default Assumption Notice." Upon this notice, Beef O Bradys or another franchisee, licensee, joint venture partner, or other designee will become the lessee of the premises. They will then be liable for all obligations under the lease arising after the date of the Lease Default Assumption Notice. The landlord is required to recognize Beef O Bradys or its designee as the new lessee.
Beef O Bradys also has the right to cure defaults related to the failure to pay rental or other sums due under the lease. In such cases, Beef O Bradys has 10 business days after receiving notice to cure the default. For all other defaults, Beef O Bradys has 20 business days after receiving notice to cure, or additional time if reasonably necessary, provided they diligently pursue the cure. The landlord cannot exercise any rights or remedies until notice is given to Beef O Bradys and the cure period has expired. Furthermore, the lease cannot be modified, amended, canceled, or terminated without Beef O Bradys's advance written consent, which they may not unreasonably withhold. The landlord must provide Beef O Bradys with copies of all proposed and executed modifications, amendments, cancellations, or terminations.