Does CB Franchising have an obligation to cure a Chocolate Bash franchisee's breach of the agreement?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Notice of Default and Opportunity to Cure. Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within 10 days after the expiration of the period in which Tenant may cure the Default.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, CB Franchising has the option, but not the obligation, to cure a franchisee's default under a lease agreement. Specifically, if a Chocolate Bash franchisee (as a tenant) receives a written notice of default from their landlord, the landlord must also provide a copy of this default notice to CB Franchising.
CB Franchising then has the option to cure the default within 10 days after the expiration of the period in which the franchisee may cure the default. This means that CB Franchising can step in to resolve the issue if the franchisee fails to do so within the allotted time.
This clause protects Chocolate Bash's brand and continued operation at the location. By having the option to cure a franchisee's default, CB Franchising can prevent lease terminations and ensure the Chocolate Bash business remains open. However, it is important to note that CB Franchising is not obligated to cure the default, and the responsibility ultimately lies with the franchisee to meet their lease obligations.