What is the purpose of the Lease Rider that Boulder Designs requires the landlord to sign?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
R: PAYEE: Boulder Designs Franchising, LLC, a Texas limited liability company,
EXHIBIT 10 TO THE FRANCHISE AGREEMENT
LEASE RIDER
EXHIBIT 10 TO THE FRANCHISE AGREEMENT
Lease Rider
| Designs | Franchising, | LLC | ("BOULDER | DESIGNS"), | a | Texas | limited | liability | company; |
|---|---|---|---|---|---|---|---|---|---|
| ("Landlord"), with its principal offices at | |||||||||
| ; and | ("Tenant"), with its principal | ||||||||
| offices at |
WITNESSETH:
In consideration of, and as an inducement to the execution of the Franchise Agreement between Franchisor and its franchisee, each of the undersigned agree as follows:
- (a) Landlord acknowledges that Tenant is a franchisee of Franchisor and that the Franchised Business is located at the Premises, operated under the Boulder Designs Franchising, LLC franchise system, pursuant to a franchise agreement ("Franchise Agreement") between Tenant and Franchisor. Landlord consents to Tenant's use at the Premises of such marks and signs, decor items, color schemes, and related components of the Boulder Designs Franchising, LLC system as Franchisor may prescribe for the Business. During the term of the Franchise Agreement, the Premises may be used only for the operation of the Business.
- (b) 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.
- (c) If Franchisor cures Tenant's default, or if Franchisor notifies Landlord that the Franchise Agreement has been terminated (which termination shall constitute a non-curable default pursuant to the Lease upon Landlord's receipt of Franchisor's notice thereof), Landlord agrees, upon Franchisor's written request, to assign to Franchisor any and all rights that Landlord may have under the Lease to remove and evict Tenant from the Premises and shall cooperate with Franchisor in order to pursue such action to a conclusion.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Lease Rider (referred to as an addendum in the document) serves several purposes that protect Boulder Designs' interests in the event that a franchisee defaults on their lease or franchise agreement. The addendum ensures that the landlord acknowledges the franchisee's relationship with Boulder Designs and that the business is operated under the Boulder Designs franchise system. This acknowledgment includes the franchisee's right to use Boulder Designs' marks, signs, decor, and color schemes at the premises. The landlord consents that the premises will only be used for the operation of the Boulder Designs business during the term of the Franchise Agreement.
One key provision of the Lease Rider is that the landlord must provide Boulder Designs with copies of any notices sent to the franchisee regarding the lease, especially notices of default. This allows Boulder Designs the right, but not the obligation, to cure the franchisee's default within 15 days of receiving notice, preventing eviction and maintaining the franchise location. However, Boulder Designs curing the default does not mean they are assuming the lease.
Furthermore, the Lease Rider ensures that Boulder Designs has the right to enter the premises to protect its system and marks, including removing signs and proprietary equipment, or to cure any default under the Franchise Agreement or the lease. The landlord also agrees to subordinate any lien they may have on the tenant's property to Boulder Designs' lien rights, securing Boulder Designs' financial interests in the franchisee's assets. The landlord also cannot assign the lease or renew or extend the term without Boulder Designs' written consent, nor can they modify the lease in any way that could materially affect the requirements without prior written consent from Boulder Designs. These measures collectively safeguard Boulder Designs' brand standards, operational control, and financial security in relation to the franchised business location.