If a Deka Lash tenant defaults on their lease, how long does the tenant have to cure the default?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
rms of the Lease, which default is not cured by Tenant within the time limits provided therein; or
- b. Default by Tenant under the terms of the Franchise Agreement which default is not cured by Tenant within the time limits provided therein; or
- c. Voluntary institution of any insolvency or bankruptcy proceedings as a debtor or insolvent on the part of Tenant or involuntary insolvency or bankruptcy proceedings brought against Tenant which are not dismissed within 60 days of the filing thereof;
- d. Discontinuation by the Tenant of operation of a Deka Lash operation in the Premises, whether voluntarily or involuntarily; or
- e. Nonrenewal by Tenant of the Franchise Agreement
- III. During the term of the Lease, Landlord agrees to give Franchisor written notice of all defaults of Tenant concurrently with the giving of such notice to Tenant. Landlord
- further agrees to give Franchisor a 10 day period to cure such default, or the period provided to the Tenant in the Lease, whichever period shall be longer.
- IV.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, if a Deka Lash tenant defaults on their lease, the tenant has the time limits provided within the lease to cure the default. If the tenant fails to cure the default within the time limits outlined in the lease, Deka Lash has the right to assume the lease.
During the lease term, the landlord must provide Deka Lash with written notice of any tenant defaults at the same time the notice is given to the tenant. Deka Lash then has a 10-day period to cure the default, or the period provided to the tenant in the lease, whichever is longer. However, Deka Lash is not obligated to cure any default unless they agree to do so in writing at their sole discretion.
This agreement ensures that Deka Lash is informed of any potential issues with the tenant's lease obligations and has the opportunity to protect its interests by stepping in to cure the default if it chooses. This can be beneficial for Deka Lash as it provides a mechanism to maintain control over the location and potentially continue operations without disruption. However, it also carries the risk that Deka Lash may need to expend resources to cure a tenant's default, depending on the specific circumstances and the terms of the lease.