What is the consequence if a Chocolate Bash franchisee fails to comply with its lease for the Location?

According to the 2024 Franchise Disclosure Document, a Chocolate Bash franchisee is required to comply with the terms of their lease agreement for the business location. While the FDD excerpt states this obligation, it does not explicitly detail the consequences of failing to comply with the lease.

However, the document does outline certain rights and options available to Chocolate Bash Franchising, LLC in the event of a lease default. The landlord is obligated to provide Chocolate Bash with copies of any default notices issued to the franchisee and allow Chocolate Bash the option to cure the default within 10 days after the franchisee's cure period expires. Additionally, if the landlord terminates the lease due to the franchisee's default, Chocolate Bash has the option to enter into a new lease with the landlord under the same terms as the original lease, provided they notify the landlord within 15 days of receiving the termination notice.

Furthermore, if the Franchise Agreement is terminated, Chocolate Bash has the right to request the franchisee to assign the lease to them, which the landlord consents to. This provision enables Chocolate Bash to maintain control over the location and potentially continue operations with a new franchisee. The FDD does not specify the penalties or repercussions a franchisee might face from the franchisor for failing to meet lease obligations, but it is reasonable to assume that such a failure could lead to termination of the franchise agreement, given the importance of maintaining a stable business location. A prospective franchisee should clarify with Chocolate Bash Franchising, LLC what specific actions or penalties they might face for non-compliance with their lease agreement.