Does Buns On Fire have the right to cure any default by the Lessee under the lease?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ees that Lessor may, upon the written request of Buns on Fire, disclose to Buns on Fire all reports, information or data in Lessor's possession with respect to sales made in, upon, or from the leased premises."
- c. "Lessor shall give written notice to Buns on Fire (concurrently with the giving of such notice to Lessee) of any default by Lessee under the lease and Buns on Fire shall have the right, in its sole discretion, to cure any such default. Such notice shall be sent to Buns on Fire at its headquarters, or such other address as Buns on Fire may specify in writing to Lessor."
2.2 Approval of Lease Terms
The Franchisor shall have the right to approve any and all of the lease terms for the premises of the Franchised Business. In the event the Franchisor cures any default by Franchisee under such lease, the total amount of all costs and payments incurred by the Franchisor in effecting such cure shall be immediately due and owing by Franchisee to the Franchisor, including, but not limited to, any and all attorney's fees.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire may have the right to cure a default by the franchisee (Lessee) under the lease. If the lease contains specific provisions, the lessor must provide written notice to Buns On Fire concurrently with the notice to the franchisee regarding any default. Following this notification, Buns On Fire has the discretion to cure the default.
Specifically, if the lease contains the provision outlined in Article 2.1, the lessor is obligated to notify Buns On Fire of any default by the franchisee. Buns On Fire then has the right, at its sole discretion, to cure the default. This ensures that Buns On Fire is informed of any issues with the lease and has the opportunity to protect its interests by resolving the default.
Additionally, another clause states that after the period in which the franchisee can cure the default, Buns On Fire has an additional 15 days to cure the default at its own discretion. However, if the default is due to bankruptcy, insolvency, or the appointment of a receiver, Buns On Fire has the right to assume the lease by paying any rental arrears up to that date. If Buns On Fire assumes the lease, the franchisee's rights under the lease cease.
These provisions are designed to give Buns On Fire significant control over the lease and the premises, allowing it to maintain the operation of the franchise even if the franchisee is in default. Prospective franchisees should carefully review these lease terms and understand the implications of Buns On Fire's rights to cure defaults and potentially assume the lease.