What is the 'Franchisor Notice' in the context of a Boulder Designs franchise lease?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
If Tenant has failed to cure such default at the expiration of the applicable cure period, Landlord shall give Franchisor further written notice of such failure ("Franchisor Notice").
Following Franchisor's receipt of the Franchisor Notice, Franchisor shall have the right (but not the obligation) to cure Tenant's default before Landlord shall exercise any of Landlord's remedies arising as a consequence of Tenant's default.
Any such cure shall be effected within 15 days following Franchisor's receipt of the Franchisor Notice.
Such cure by Franchisor shall not be deemed to be an election to assume the terms, covenants, obligations, and conditions of the Lease.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a 'Franchisor Notice' comes into play when a franchisee (the tenant) defaults on their lease agreement with the landlord. If the franchisee fails to correct the default within the specified cure period, the landlord must provide written notification of this failure to Boulder Designs. This notification is termed the 'Franchisor Notice.'
Upon receiving the Franchisor Notice, Boulder Designs has the right, but not the obligation, to rectify the franchisee's default before the landlord takes any action to enforce their remedies. Boulder Designs has 15 days from the receipt of the Franchisor Notice to cure the default. This arrangement allows Boulder Designs to protect its brand and the franchise system by ensuring the location remains operational, even if the franchisee is facing difficulties.
It is important to note that if Boulder Designs chooses to cure the franchisee's default, this action does not mean that Boulder Designs is assuming the lease itself. The franchisor is simply stepping in to resolve the immediate issue. This clause in the lease agreement addendum provides a safety net for both the landlord and the franchisor, ensuring the property is managed responsibly and the Boulder Designs business can continue operating smoothly.