Is Crave Cookies obligated to cure a default under the lease if the tenant fails to do so?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Notice of Default and Opportunity to Cure. Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within 10 days after the expiration of the period in which Tenant may cure the Default.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies is not obligated to cure a default under the lease if the tenant fails to do so. The lease agreement grants Crave Cookies the option, but not the obligation, to cure any default under the lease if the franchisee (tenant) fails to do so.
Specifically, if the landlord provides Crave Cookies with a copy of any written notice of default given to the tenant, Crave Cookies has the option to cure the default within 10 days after the expiration of the period in which the tenant may cure the default. This arrangement is outlined in the Franchisor Rider, which is incorporated into the lease agreement, and in the event of any conflict between the lease and the rider, the terms of the rider will control.
This clause protects Crave Cookies by allowing them to maintain control over the location and brand image, while not forcing them to take on financial responsibility for a struggling franchise. For a prospective franchisee, this means that Crave Cookies's involvement in lease defaults is discretionary, and the franchisee bears the primary responsibility for maintaining the lease terms. It is important for franchisees to understand their obligations under the lease and the potential consequences of default.