If the tenant defaults on the lease, is the landlord obligated to notify Chocolate Bash?
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.
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- Termination of Lease. Landlord shall copy Franchisor on any notice of termination of the Lease. If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease. To exercise this option, Franchisor must notify Landlord within 15 days after Franchisor receives notice of the termination of the Lease.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the landlord is required to notify Chocolate Bash if the tenant defaults on the lease. Specifically, the landlord must provide Chocolate Bash with copies of any written notice of default given to the tenant. This allows Chocolate Bash to stay informed about the franchisee's compliance with the lease terms.
Furthermore, the landlord grants Chocolate Bash the option, but not the obligation, to cure any default under the lease if the tenant fails to do so. Chocolate Bash has 10 days after the expiration of the period in which the tenant may cure the default to take action. This provision protects Chocolate Bash's interest in maintaining the location and brand presence, as it allows them to prevent lease termination by addressing the tenant's default.
In the event that the landlord terminates the lease due to the tenant's default, the landlord must copy Chocolate Bash on any notice of termination. Chocolate Bash then has the option to enter into a new lease with the landlord under the same terms and conditions as the terminated lease. To exercise this option, Chocolate Bash must notify the landlord within 15 days after receiving notice of the termination. This provides Chocolate Bash with a mechanism to secure the location for another franchisee or for corporate operations, ensuring continuity of the Chocolate Bash business at that site.