Under what conditions can Boulder Designs Franchising, LLC assume the lease for the remainder of the term?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) If Franchisor cures Tenant's default, or notifies Landlord of the termination of the Franchise Agreement, Franchisor shall have the right and option, upon written notice to Landlord, to do the following:
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Undertake to perform the terms, covenants, obligations, and conditions of the Lease on behalf of the Tenant (notwithstanding any removal or eviction of Tenant) for a period not to exceed six months from the first date of any cure by Franchisor; or
At any time within or at the conclusion of such six-month period, assume the terms, covenants, obligations, and conditions of the Lease for the remainder of the term, together with any applicable renewal options.
In such event, Landlord and Franchisor shall enter into an agreement to document such assumption.
Franchisor is not a party to the Lease and shall have no liability under the Lease unless and until said Lease is assigned to, and assumed by, Franchisor as herein provided.
- Boulder Designs® 1 (e) If, during the six-month period set forth in section (d)(1) above, or at any time after the assignment contemplated in section (d)(2), Franchisor shall notify Landlord that the franchise for the Business is being granted to another Boulder Designs franchisee, Landlord shall permit the assignment of the Lease to said
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs Franchising, LLC has the option to assume the lease for the remainder of its term under specific conditions. Boulder Designs can take over the lease if it cures a default by the franchisee (Tenant) or if Boulder Designs notifies the landlord of the termination of the Franchise Agreement.
In either of these scenarios, Boulder Designs has the right to notify the landlord in writing and then choose one of two options. First, Boulder Designs can perform the lease terms on behalf of the franchisee for up to six months from the date of the initial cure. Second, at any point during or at the end of that six-month period, Boulder Designs can assume the lease for the remainder of the term, including any renewal options. If Boulder Designs chooses to assume the lease, a formal agreement must be made between the landlord and Boulder Designs to document the assumption.
It is important to note that Boulder Designs is not liable under the lease until it formally assumes the lease. Additionally, if Boulder Designs grants the franchise to another Boulder Designs franchisee, the landlord must allow the lease to be assigned to the new franchisee, provided they meet reasonable financial qualifications. After such an assignment, Boulder Designs is released from any further liabilities under the lease.