What is the duration of the Cure Period that Craters & Freighters has to cure a default under the lease?
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, if a franchisee defaults on their lease, Craters & Freighters has the option to cure the default within a specific timeframe. This timeframe, known as the Cure Period, lasts for thirty (30) days after Craters & Freighters receives a Default Notice from the landlord.
During this Cure Period, Craters & Freighters has the right, but not the obligation, to address the franchisee's default. Craters & Freighters must notify the landlord in writing if they intend to cure the default and take over the franchisee's interest in the lease. If Craters & Freighters decides to take possession of the premises and assume the franchisee's obligations under the lease, the landlord agrees to recognize Craters & Freighters as the new tenant, provided that Craters & Freighters cures the default within the 30-day Cure Period.
This arrangement provides a safety net for both the franchisee and Craters & Freighters. It gives Craters & Freighters the opportunity to maintain the location and continue operations if a franchisee is struggling, while also ensuring that the landlord receives due payments and the lease obligations are met. The franchisee benefits from potentially avoiding lease termination and further financial repercussions. However, it's important to note that Craters & Freighters is not obligated to cure the default, and the ultimate decision rests with them.