What is the deadline for Checkersrallys to cure a default by the tenant under the lease, if Checkersrallys chooses to do so?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord agrees to: (a) furnish to Franchisor a copy of any default notice served on Tenant and/or another lessee under the Lease simultaneously with the service of the notice to Tenant and/or such other lessee; (b) provide Franchisor with notice of any proposed renewals, extensions, modifications and amendments to the Lease; (c) give Franchisor the opportunity, but Franchisor shall not be required, to cure any default by Tenant or other lessee under the Lease within 15 days following the expiration of any applicable cure period if Tenant and/or such other lessee fail to cure such default; and (d) to furnish to Franchisor, at Franchisor's request, a copy of any sales or operating information for the Premises provided by Tenant.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, if a tenant defaults on their lease, the landlord must provide Checkersrallys with a copy of the default notice. Checkersrallys then has the opportunity, but not the requirement, to cure the default. If Checkersrallys chooses to cure the default, they have 15 days following the expiration of any applicable cure period that was available to the tenant.
This clause in the franchise agreement addendum to the lease is designed to protect Checkersrallys' interests in maintaining the franchise location. By having the right to cure a default, Checkersrallys can prevent the loss of a location due to a franchisee's financial difficulties or other lease violations. This is a significant benefit for Checkersrallys as it allows them to maintain their brand presence and continue generating revenue from that location.
For a prospective Checkersrallys franchisee, this clause offers some indirect protection. If the franchisee were to default on the lease, Checkersrallys has the option to step in and cure the default, potentially preventing eviction and business closure. However, it's important to note that Checkersrallys is not obligated to cure the default, and the franchisee would still be responsible for their own financial obligations under the lease. Franchisees should still aim to maintain a strong financial position and adhere to all lease terms to avoid default in the first place.