What is the landlord required to do if the Chatime tenant fails to cure a default?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
If Tenant fails to cure any default within the period provided in the Lease, if any, Landlord shall give Franchisor immediate written notice of such failure to cure.
All notices shall be
- delivered by certified mail at the addresses designated in the heading of this Agreement or to such other addresses as the parties hereto may, by written notice, designate.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if a Chatime franchisee (the tenant) fails to correct a default within the period specified in their lease, the landlord must immediately provide written notice of this failure to Chatime. This notice must be delivered by certified mail to the addresses listed in the Lease Addendum agreement or to any other address that the parties have designated in writing.
This requirement ensures that Chatime is promptly informed of any issues that could jeopardize the franchisee's ability to operate the Chatime store. By receiving this notice, Chatime can then take steps to protect its interests, which may include working with the franchisee to resolve the default, taking over the lease, or finding a new franchisee for the location. The Lease Addendum is a critical document that outlines the rights and responsibilities of the landlord, tenant, and Chatime, and it takes effect on the date it is executed by all parties.
For a prospective Chatime franchisee, this clause offers a degree of security. It means that Chatime is actively monitoring the franchisee's compliance with the lease terms and is prepared to intervene if necessary. However, it's important to note that Chatime is not obligated to cure the default; the franchisor simply has the right to be informed and to take action as it deems appropriate. The franchisee remains primarily responsible for fulfilling their lease obligations.