Is Craters & Freighters obligated to cure any default by the Lessee under the Lease?

According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters is not obligated to cure any default by the franchisee (Lessee) under the lease. However, if the franchisee fails to cure a default under the lease, the landlord must provide Craters & Freighters with written notice of the default. Upon receiving this notice, Craters & Freighters has the right, but not the obligation, to cure the default within thirty (30) days.

Craters & Freighters can then notify the landlord in writing if it intends to cure the default and take over the franchisee's interest in the lease. If Craters & Freighters chooses to take possession of the premises and confirms in writing that it will assume the franchisee's obligations under the lease, the landlord must recognize Craters & Freighters as the tenant, provided that Craters & Freighters cures the default within the specified cure period.

Furthermore, if Craters & Freighters assumes the franchisee's interest in the lease, it has the right to assign the lease to another party or sublease the premises to someone who agrees to take on the tenant's obligations, subject to the landlord's reasonable approval. Once Craters & Freighters assigns the lease, it will no longer have any liability or obligation under the lease, except to certify that the new assignee or sublessee operates the premises as a Craters & Freighters business. This arrangement provides Craters & Freighters with the option to maintain control over the location and ensure continued operation of a Craters & Freighters franchise at that site, without being forced to assume the lease obligations.