What is the landlord's obligation to the Deka Lash franchisor regarding tenant defaults?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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. Nothing in this Agreement shall obligate Franchisor to cure any such default, unless Franchisor agrees in writing in its sole discretion.
- V. The date upon which the assignment shall be effective (the "Effective Date"), is the date upon which Landlord and Tenant receive written notice from Franchisor that:
- a. Franchisor will cure the default of Tenant in the Lease in which Landlord has given notice to Franchisor pursuant to the provisions of Section 3 above, and that Franchisor will assume the Lease; or
- b. The events described in either subsections 2(b), 2(c), 2(d) or 2(e) above have occurred and that Franchisor will assume the Lease.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the landlord has specific obligations to Deka Lash in the event of a tenant (franchisee) default. The landlord must provide Deka Lash with written notice of any franchisee defaults at the same time the notice is given to the franchisee. This ensures Deka Lash is promptly informed of any issues. The landlord must also give Deka Lash a period of 10 days, or the period provided to the tenant in the lease, whichever is longer, to cure the default. This allows Deka Lash the opportunity to rectify the situation and protect its interests.
This arrangement is outlined in an addendum to the lease agreement, which clarifies that its terms supersede any conflicting terms in the original lease. However, all other terms of the lease remain in effect. This addendum ensures that Deka Lash is kept informed of any defaults by the franchisee and has the opportunity to address them.
This agreement does not obligate Deka Lash to cure any default unless Deka Lash agrees to do so in writing at its sole discretion. This provides Deka Lash with the flexibility to decide whether or not to intervene in a franchisee's default situation. The date upon which the assignment of the lease becomes effective is the date the landlord and tenant receive written notice from Deka Lash that Deka Lash will cure the default and assume the lease, or that other specific events have occurred and Deka Lash will assume the lease. This ensures a clear and defined process for the transfer of lease obligations.