What happens if the Better Blend tenant fails to cure a default under the lease?

According to Better Blend's 2024 Franchise Disclosure Document, if a Better Blend franchisee (the tenant) fails to correct a default under their lease agreement, the landlord is required to provide Better Blend with a copy of the default notice. Better Blend then has the option, but not the obligation, to cure the default within 10 days after the period in which the tenant was supposed to cure it has expired.

Furthermore, the landlord must copy Better Blend on any lease termination notice. 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 original lease. To exercise this option, Better Blend must notify the landlord within 15 days after receiving notice of the lease termination.

This arrangement protects Better Blend by giving it the ability to maintain control over the location of the franchise, even if the original franchisee fails to meet their lease obligations. By stepping in and curing the default or entering into a new lease, Better Blend can ensure the continued operation of a franchise at that location, either under its own management or by assigning the lease to another franchisee. This is a fairly common practice in franchising, as it allows the franchisor to protect its brand and market presence.

If the Franchise Agreement between Better Blend and the tenant is terminated during the term of the lease, the tenant is required to assign the lease to Better Blend upon written request from Better Blend. The landlord consents to this assignment. This provision further solidifies Better Blend's control over the leased premises in the event of a franchisee's default or termination.