Is the Franchisor obligated to cure any default by the Byrider tenant?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to exercising any remedies hereunder (except in the event of imminent danger to the Premises), Landlord shall give Franchisor written notice of any default by Tenant, and commencing upon receipt thereof by Franchisor, Franchisor shall have ten (10) additional days to the established cure period as is given to Tenant under the Lease for such default, provided that in no event shall Franchisor have a cure period of less than (i) ten (10) days after Franchisor's receipt of such notice as to monetary defaults or (ii) 30 days after Franchisor's receipt of such notice as to non-monetary defaults.
Landlord agrees to accept cure tendered by Franchisor as if the same was tendered by Tenant, but Franchisor has no obligation to cure such default.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the franchisor has the right, but not the obligation, to cure a default by the tenant (franchisee). Specifically, if the landlord provides Byrider written notice of any default by the franchisee, Byrider has an additional cure period. This period is ten days after Byrider receives the notice for monetary defaults, or 30 days after receipt for non-monetary defaults, provided that the franchisee's lease allows for a cure period. The landlord must accept a cure tendered by Byrider as if it were tendered by the franchisee.
This clause protects Byrider by giving it the opportunity to prevent a franchisee from losing their location due to a lease default. By curing the default, Byrider can ensure the franchisee remains in operation and maintains the Byrider brand presence. However, Byrider is not required to cure the default, meaning the franchisee bears the ultimate responsibility for complying with the lease terms.
This type of clause is relatively common in franchising, especially when the franchisor's brand is tied to the location. It allows the franchisor to step in and protect its interests without being automatically liable for the franchisee's obligations. A prospective franchisee should understand that while Byrider has the option to help, the franchisee is ultimately responsible for meeting all lease obligations.