What is the landlord's obligation regarding notification of lease modifications or defaults to Brain Balance (Assignee) under the Conditional Assignment of Lease?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord shall provide Assignee with (i) fifteen (15) days' written notice prior to any modification, amendment or cancellation of the Lease, and (ii) copies of any written notices of default given to Assignor under the Lease within three (3) days of Landlord's giving such notice to Assignor.
Landlord grants to Assignee, at Assignee's option, the right (but not the obligation) to cure any default under the Lease within fifteen (15) days after the expiration of the period in which Assignor may cure the default, if Assignor fails to do so.
Notwithstanding any action by Assignee to cure Assignor's default under the Lease, Assignor shall be deemed to be in default under the Lease for purposes of this Assignment.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the landlord has specific obligations to notify Brain Balance, as the Assignee, regarding any modifications or defaults related to the lease. The landlord must provide Brain Balance with written notice 15 days before any modification, amendment, or cancellation of the lease. Additionally, the landlord is required to provide Brain Balance with copies of any written notices of default given to the franchisee (Assignor) under the lease within three days of providing such notice to the franchisee.
This arrangement protects Brain Balance's interests in the event of franchisee issues. It allows Brain Balance to stay informed about the status of the lease and any potential problems that could arise. By receiving advance notice of lease modifications or defaults, Brain Balance has the opportunity to assess the situation and take appropriate action to protect its investment and the continuity of the franchise location.
Furthermore, Brain Balance has the option, but not the obligation, to cure any default under the lease if the franchisee fails to do so. Brain Balance has fifteen days after the expiration of the period in which the franchisee may cure the default to take action. This provides Brain Balance with an additional layer of security, allowing them to step in and resolve any issues that could jeopardize the lease and the operation of the franchise. Even if Brain Balance acts to cure a default, the franchisee is still considered in default under the lease for the purposes of the assignment.