If the Boulder Designs tenant fails to cure a default, what is the landlord required to do?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting the foregoing, in the event of any default by Tenant, Landlord shall give Franchisor written notice of such default.
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 the 2025 Boulder Designs Franchise Disclosure Document, if a franchisee (tenant) defaults on their lease and fails to correct the issue within the given timeframe, the landlord must provide Boulder Designs with written notification of this failure. This notification is termed the "Franchisor Notice."
Following receipt of this notice, Boulder Designs has the option, but not the obligation, to resolve the franchisee's default before the landlord takes any action to enforce their remedies. Boulder Designs has 15 days from the date they receive the Franchisor Notice to cure the default.
It's important to note that if Boulder Designs chooses to cure the default, it does not mean they are taking over the lease agreement. This arrangement aims to protect Boulder Designs' interests by giving them a chance to keep the franchise location operational, while also ensuring the landlord receives any outstanding payments or sees the default remedied.