Who can be appointed as a receiver for a Casa De Corazon franchise?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Upon expiration without renewal or termination of the Franchise Agreement for any reason whatsoever, the Landlord will grant Franchisor an option, for thirty (30) days thereafter, to replace Franchisee as lessee and at any time thereafter to assign its interest to Franchisor, an affiliate or another franchisee of Franchisor who would then become the lessee with the approval of lessor, which approval may not be unreasonably withheld;
- (2) Landlord agrees to furnish to Franchisor copies of any and all correspondence and notices sent to Tenant pertaining to the Lease and the Premises at the same time that such correspondence and notices are sent to Tenant. To that end, Landlord shall furnish to Franchisor, contemporaneously with that to Franchisee, written notice of any default in the Lease and the action required to cure such default. In the event of a monetary default, Landlord shall allow Franchisor thirty (30) days after receipt of such notice to escrow the funds necessary to cure such default if Franchisee fails to do so. In the event of a non-monetary default, Landlord shall allow Franchisor thirty (30) days after Franchisor's receipt of such written notice to provide Landlord with a letter of undertaking to cure such default if Franchisee fails to do so. If Franchisee fails to cure either type of default, and Franchisor has escrowed the required funds, or provided the necessary undertaking, as the case may be, Landlord shall take any action necessary to remove Franchisee from the Premises and retake possession of the Premises. Landlord shall then allow Franchisor to cure the default and take possession of the Premises as lessee under the same Lease, and at any time thereafter to assign Franchisor's interest in such Lease to another franchisee of Franchisor;
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
Based on the 2025 Casa De Corazon Franchise Disclosure Document, the landlord of the premises where a Casa De Corazon franchise is located has certain rights in the event of the franchisee's default or the termination of the franchise agreement. Specifically, upon the expiration or termination of the Franchise Agreement, the landlord will grant Casa Franchising, LLC an option for 30 days to replace the franchisee as the lessee. After that 30 day period, Casa Franchising, LLC can assign its interest to an affiliate or another franchisee, subject to the landlord's approval, which cannot be unreasonably withheld.
In the event of a default by the franchisee, the landlord is required to provide written notice to Casa Franchising, LLC at the same time it notifies the franchisee. For a monetary default, Casa Franchising, LLC has 30 days after receiving notice to escrow the funds necessary to cure the default if the franchisee fails to do so. For a non-monetary default, Casa Franchising, LLC has 30 days to provide a letter of undertaking to cure the default if the franchisee does not.
If the franchisee fails to cure the default and Casa Franchising, LLC has provided the necessary funds or undertaking, the landlord must take action to remove the franchisee from the premises. The landlord must then allow Casa Franchising, LLC to cure the default and take possession of the premises as the lessee under the same lease. Casa Franchising, LLC can then assign its interest in the lease to another franchisee. This arrangement ensures that Casa Franchising, LLC has the ability to maintain a Casa De Corazon location even if the original franchisee is unable to continue operating the business.