Does Boulder Designs have the obligation to provide a longer notice and cure period?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord agrees to furnish to Franchisor copies of any and all letters and notices sent to Tenant pertaining to the Lease and the Premises at the same time that such letters and notices are sent to Tenant.
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 Boulder Designs' 2025 Franchise Disclosure Document, the landlord of the premises where a Boulder Designs franchise is located must furnish Boulder Designs with copies of any default notices sent to the franchisee. If the franchisee fails to cure the default within the specified period, the landlord must provide Boulder Designs with written notice of this failure, termed the "Franchisor Notice." Following receipt of this notice, Boulder Designs has the right, but not the obligation, to cure the franchisee's default before the landlord takes further action.
Boulder Designs has 15 days following receipt of the Franchisor Notice to cure the default. This cure period allows Boulder Designs to protect its brand and system standards by ensuring the location remains operational or by finding a new franchisee for the location.
This arrangement benefits both Boulder Designs and the landlord. Boulder Designs has the opportunity to maintain its presence and standards, while the landlord has a higher likelihood of continuous lease payments, either from the original franchisee (after the cure) or from Boulder Designs itself or a replacement franchisee. The agreement specifies that Boulder Designs curing the default does not mean they are taking over the lease unless they explicitly agree to do so.