What is the 'Cure Period' defined as in the Craters & Freighters Lease Addendum?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Upon the delivery of the Default Notice in accordance with Section 1 above, Landlord agrees that Franchisor will have the right, but will not be obligated, to cure any default(s) by Lessee under the Lease within thirty (30) days after delivery by Landlord of the Default Notice ("Cure Period"). Franchisor will notify Landlord in writing whether it intends to cure the default(s) of Lessee and take an automatic assignment of Lessee's interest in the Lease.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Cure Period is defined within the context of the Lease Addendum, which addresses potential defaults on the lease agreement by the franchisee (Lessee). Specifically, the Cure Period refers to the timeframe Craters & Freighters (the Franchisor) has to rectify any defaults made by the franchisee under their lease agreement.
Upon receiving a written Default Notice from the landlord regarding the franchisee's failure to meet lease obligations, Craters & Freighters has the option, but not the obligation, to correct these defaults. The Cure Period lasts for thirty (30) days following the delivery of the Default Notice. During this time, Craters & Freighters will decide whether to cure the franchisee's default and take over the franchisee's interest in the lease through an automatic assignment.
This provision in the Lease Addendum protects Craters & Freighters's interests by giving them the opportunity to maintain control over the location of the franchise, which is critical to the brand's operation. By stepping in and curing a default, Craters & Freighters can ensure the continued operation of the franchise at that location, either by reassigning the lease to another franchisee or by operating the location themselves temporarily. This clause also benefits the landlord, as it provides an assurance that the lease obligations will be met, either by the original franchisee or by Craters & Freighters.