What right does Carvel want included in the lease regarding notice of default?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use commercially reasonable efforts to ensure that all Leases include, unless we agree otherwise in writing:
- (i) a provision which requires the landlord concurrently to provide us with a copy of any written notice of breach or default under the Lease sent to you, and which grants to us the right (but not the obligation) to cure any defaults under the Lease within a reasonable time (not to exceed 15 days for monetary defaults and 30 days for non-monetary defaults);
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel wants to ensure that all leases include a provision requiring the landlord to provide Carvel with a copy of any written notice of breach or default sent to the franchisee. This allows Carvel to stay informed about any potential issues with the lease agreement.
Additionally, Carvel wants the right, but not the obligation, to cure any defaults under the lease within a reasonable time. The FDD specifies that this cure period should not exceed 15 days for monetary defaults and 30 days for non-monetary defaults. This provision protects Carvel's interest in the location and allows them to step in and resolve any issues to prevent the franchisee from losing the location.
These preferred lease terms are designed to give Carvel more control and oversight over the leased location, mitigating risks associated with franchisee lease defaults. By having the right to cure defaults, Carvel can protect its brand and ensure the continued operation of the franchise at that location. Prospective franchisees should understand that Carvel requires these lease terms and should be prepared to negotiate with landlords to include them in the lease agreement.