If a Crave Cookies tenant defaults on their lease, does Crave Cookies have the obligation to cure the default?

According to Crave Cookies's 2025 Franchise Disclosure Document, if a tenant (franchisee) defaults on their lease, Crave Cookies does not have the obligation to cure the default. The landlord must provide Crave Cookies with written notice of the default and Crave Cookies has the option, but not the obligation, to cure the default if the tenant fails to do so. Crave Cookies has 10 days after the expiration of the period in which the tenant may cure the default to act.

This clause is part of a rider to the lease agreement between the landlord and the Crave Cookies franchisee. This rider also states that in the event of any conflict between the lease and the rider, the terms of the rider will take precedence. The landlord is also required to copy Crave Cookies on any notice of termination of the lease. If the landlord terminates the lease due to the tenant's default, Crave Cookies 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, Crave Cookies must notify the landlord within 15 days after receiving notice of the lease termination.

This arrangement benefits Crave Cookies by giving them a chance to maintain a location and continue operations even if a franchisee fails. It protects the brand's presence and revenue stream in that market. However, it's important to note that Crave Cookies is not obligated to step in and cure a default, meaning a location could still be lost if they choose not to intervene. For a prospective franchisee, this means that the success of their Crave Cookies business is largely dependent on their own financial stability and ability to meet lease obligations, as they cannot rely on Crave Cookies to bail them out in case of a default.