What right does Brueggers Bagels have to cure lease deficiencies if a Brueggers Bagels franchisee fails to do so?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord agrees that Franchisor, at its sole option and without obligation so to do, may cure any such default within the applicable cure period, if any, afforded to Tenant under the Lease, in which event Landlord shall accept such cure as if the same had been made by Tenant.
If as a result of such default, Landlord is electing to terminate the Lease or Tenant's right of possession of the Premises, then Landlord shall offer to Franchisor and Franchisor shall have the right to accept, an assignment of the Lease or a new lease containing the same terms and conditions of the Lease, whichever Franchisor elects.
If Franchisor elects to continue the use of the Leased Premises under an assignment of the Lease or a new lease, it shall so notify the Landlord in writing within thirty (30) days after it has received written notice from the Landlord specifying the defaults the Tenant has failed to cure within the grace period specified in the Lease.
Upon receipt of such notice from Franchisor, the Landlord shall promptly execute and deliver to Franchisor an assignment of the Lease or a new lease, whichever Franchisor requests, and shall deliver to Franchisor possession of the Leased Premises, free and clear of any rights of the Tenant or any third party.
Franchisor, before taking possession of the Leased Premises, shall promptly cure the defaults specified by the Landlord in its notice to Franchisor and shall execute and deliver to the Landlord its acceptance of the assignment of the Lease or of the new lease, as the case may be.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the landlord agrees that Brueggers Bagels, at its sole option and without obligation, can cure any default within the cure period afforded to the franchisee under the lease. The landlord must accept this cure as if the franchisee had made it themselves. This means Brueggers Bagels has the right, but not the obligation, to step in and resolve any lease-related issues a franchisee might be facing, such as unpaid rent or failure to maintain the premises, to prevent a lease termination.
If the landlord intends to terminate the lease or the franchisee's right of possession due to a default, the landlord must offer Brueggers Bagels the option to take over the lease through an assignment or a new lease with the same terms and conditions. Brueggers Bagels has the right to accept this offer. If Brueggers Bagels chooses to continue using the leased premises, it must notify the landlord in writing within 30 days of receiving written notice from the landlord that specifies the defaults the franchisee failed to cure within the lease's grace period.
Upon receiving notice from Brueggers Bagels, the landlord must promptly execute and deliver an assignment of the lease or a new lease, whichever Brueggers Bagels requests, and provide Brueggers Bagels with possession of the leased premises, free and clear of any rights of the franchisee or any third party. Before taking possession, Brueggers Bagels must promptly cure the defaults specified by the landlord in their notice and execute and deliver its acceptance of the assignment of the lease or the new lease. This ensures that Brueggers Bagels can maintain the location and continue operations, which protects the brand's presence and revenue stream.