Is Deka Lash obligated to cure a tenant's lease default?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
- VI. As of the Effective Date, Franchisor will assume all rights, duties, responsibilities and obligations of Tenant arising on or after the Effective Date pursuant to the terms and provisions of the Lease.
- VII. Landlord hereby consents to the terms and provisions of this Agreement, and to the assignment of the Lease to Franchisor. Landlord agrees that after the Effective Date, Franchisor may (i) enter into a sublease with any other franchisee of Franchisor without Landlord's further consent, or (ii) further assign the Lease to a franchisee of Franchisor who shall agree to assume Tenant's obligations under the Lease. Landlord further agrees that upon the occurrence of any such assignment, Franchisor shall have no further liability or obligation under the Lease.
- VIII. Tenant and Landlord agree not to allow any surrender or other assignment of the Lease without the prior written consent of Franchisor.
- IX. All notices or demands required hereunder shall be made in writing and shall be deemed to be fully given two days after deposit in the U.S. certified mail, postage prepaid, return receipt requested or one day after sent Federal Express or similar overnight courier for overnight delivery. Franchisor's address for notices is 20 South Main Street, #248, Bountiful, UT 84010.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash is not obligated to cure a tenant's lease default unless they agree to do so in writing at their sole discretion. However, if the tenant defaults on their lease, the landlord must provide Deka Lash with written notice of the default concurrently with the notice given to the tenant. Deka Lash is given a period to cure the default, or the period provided to the tenant in the lease, whichever is longer.
If Deka Lash chooses to cure the default, they will notify both the landlord and tenant in writing that they will assume the lease. Upon the effective date of the assignment, Deka Lash assumes all the tenant's rights, duties, responsibilities, and obligations under the lease. The landlord consents to the assignment of the lease to Deka Lash and agrees that Deka Lash can sublease or further assign the lease to another Deka Lash franchisee without the landlord's further consent. Upon such assignment to another franchisee, Deka Lash will have no further liability under the lease.
The tenant and landlord are not allowed to surrender or assign the lease without Deka Lash's prior written consent. This arrangement protects Deka Lash's interests by ensuring they have the option to take over a lease if a franchisee defaults, thereby maintaining the location within the Deka Lash system. However, it's important to note that Deka Lash's decision to cure a default and assume the lease is entirely at their discretion, providing them with flexibility but no obligation.