If the tenant defaults on the lease, does Chocolate Bash have the option to cure the default?

According to Chocolate Bash's 2024 Franchise Disclosure Document, if a franchisee (tenant) defaults on their lease, Chocolate Bash has the option, but not the obligation, to cure the default. The landlord is required to provide Chocolate Bash with copies of any written notice of default given to the tenant. Chocolate Bash then has 10 days after the expiration of the period in which the tenant may cure the default to take action.

Additionally, the landlord must copy Chocolate Bash on any notice of termination of the lease. If the landlord terminates the lease due to the tenant's default, Chocolate Bash has the option to enter into a new lease with the landlord under the same terms and conditions as the original lease. To exercise this option, Chocolate Bash must notify the landlord within 15 days after receiving notice of the lease termination.

This arrangement provides Chocolate Bash with a degree of control over the location of its franchises, even if a franchisee fails to meet their lease obligations. By stepping in to cure a default or enter into a new lease, Chocolate Bash can maintain a presence in a particular location and protect its brand. However, Chocolate Bash is not obligated to take these steps, and the decision to do so will likely depend on the specific circumstances of the default and the strategic importance of the location.