Under what condition is Creative World School not obligated to cure a rental default?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Franchisor as Tenant. In the event Franchisor becomes the tenant under the Lease, whether by assignment or by exercise of its rights under its franchise documents, Landlord shall recognize Franchisor as the Tenant under the Lease and Franchisor shall, within ten (10) days of it becoming the Tenant, cure any then-existing default in the payment of rental; provided however that Franchisor shall not have any obligation to cure any default in the payment of rental as to which Franchisor was not given notice by Landlord within twenty (20) days following the date such rental was due. The preceding sentence shall not prevent Landlord from pursuing Tenant for such past due rental.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, Creative World School, as the tenant, is not obligated to cure a rental default if the landlord fails to provide notice of the default within twenty days following the date the rental payment was due. This condition applies if Creative World School becomes the tenant under the lease, either through assignment or by exercising its rights under the franchise documents.
This provision protects Creative World School from being held responsible for rental defaults that they were not promptly informed about. It ensures that the landlord must provide timely notice of any missed rental payments, giving Creative World School a reasonable opportunity to address the issue. However, this does not prevent the landlord from pursuing the original tenant for the past due rental amounts.
This clause clarifies the responsibilities and limitations of Creative World School's obligations regarding rental payments when they step in as the tenant. It highlights the importance of timely communication between the landlord and Creative World School to ensure that any rental defaults are addressed promptly and fairly. This condition provides a specific timeframe for notification, which is crucial for managing potential liabilities and maintaining a clear understanding of financial obligations under the lease agreement.