Is the Franchisor obligated to cure a default under the lease for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
the Franchise Agreement apply to and are incorporated into this MUDA as if fully set forth herein.
[Signatures on Next Page]
| Name | Shares or Percentage of Ownership | |---|---| | | | | | | | | | | | | | | |
EXHIBIT D
RIDER TO LEASE AGREEMENT
| Name | Title |
|---|---|
-
- Use. Tenant is a franchisee of Franchisor. The Leased Premises shall be used only for the operation of a Better Blend 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. If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease. To exercise this option, Franchisor must notify Landlord within 15 days after Franchisor receives notice of the termination of the Lease.
-
- Termination of Franchise Agreement. If the Franchise Agreement between Franchisor and Tenant is terminated during the term of the Lease, then upon the written request of Franchisor, Tenant shall assign the Lease to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the franchisor, Better Blend Franchising, LLC, is not obligated to cure a default under the lease for a franchisee. However, if the landlord provides Better Blend with a copy of any written notice of default given to the tenant (franchisee), the landlord grants Better Blend the option, but not the obligation, to cure any default under the lease if the tenant fails to do so. Better Blend has 10 days after the expiration of the period in which the tenant may cure the default to exercise this option.
Furthermore, the landlord must copy Better Blend on any notice of termination of the lease. If the landlord terminates the lease due to the tenant's default, Better Blend has the option to enter into a new lease with the landlord under the same terms and conditions as the terminated lease. To exercise this option, Better Blend must notify the landlord within 15 days after receiving notice of the lease termination.
Additionally, upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Better Blend or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Better Blend's brand name, trademarks, and commercial symbols, provided that Better Blend will be liable to Landlord for any damage Better Blend or its designee causes by such removal. By executing the Rider, Better Blend does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.